###Question 9###

STU Company is considering two mutually exclusive projects, Project C and Project D. The expected net cash flows for each project over a four-year period are provided below:

Projected Net Cash Flows (in thousands of dollars)

Year 0:

• Project C: $(250)$
• Project D: $(300)$

Year 1:

• Project C: $60$
• Project D: $80$

Year 2:

• Project C: $80$
• Project D: $100$

Year 3:

• Project C: $100$
• Project D: $120$

Year 4:

• Project C: $120$
• Project D: $140$

Requirements:

1. Calculate the Net Present Value (NPV) for each project using a discount rate of $10%$.
2. Determine the Internal Rate of Return (IRR) for each project.
3. Compute the Modified Internal Rate of Return (MIRR) for each project assuming a reinvestment rate of $10%$.
4. Find the payback period for each project.
5. Evaluate the overall attractiveness of each project considering both quantitative and qualitative factors.