Problem Four Use the following data to answer Questions 18 and 19 ONLY: Sami is a financial analyst and he identifies the following cash flows for an moderate-risk project: . Year o -$5,000 Year 1-2 $1,900 Year 3 $2,500 Year 4 $2,000 18. If the company's cost of capital is 12%, the project's discounted payback period is closest to: * O A. 2.5 years O B. 3.0 years O C. 3.9 years O D. None of the above 19. If the company's cost of capital is 12%, the project's Modified Internal Rate of Return is closest to: O A 14.45 O B.18% O C. 1245 O D. 18.4% O E None of the above 20. SAWAYA Construction Inc. is choosing between two mutually exclusive projects. The company has a cost of capital of 12%, and the risk of the projects is equivalent to the average risk of the firm. Project "M" has a cost of $12,000 and would generate 3-year cash flows of $4,000. $5,000 and $6,000 respectively. Project "Z" has a cost of $20,000 and would generate 5-year cash flows of $3,000, $3,000. $3,000, $5,000 and $8,000 respectively. The company should accept O A Project M, since it has the higher EAA. O B. Project Z, since it has the higher EAA. O C. Both projects M and Z, since they have positive EEA O D. Neither project M nor project Z, since they have negative NPV and negative EEA. E None of the above