Use the following data to answer questions $1-5$:

Wilson & Sons Inc. requires $15\%$ return on its investments. The company is

considering the following two mutually exclusive investment projects:

Year Project A Project B

$0($$$50,000)$ $$(75,000)$

$1$ $$18,000$ $$21,000$

$2$ $$22,000$ $$27,000$

$3$ $$20,000$ $$28,000$

$4$ $$14,000$ $$35,000$

$1.$ Calculate the Payback for each project.

If the company imposes a payback cutoff of three years for its investment projects,

should it accept either of the two projects?

$2.$ Calculate the Discounted Payback for each project.

Which project is preferred, based on discounted payback period? Why?

$3.$ Calculate the Net Present Value $($NPV$)$ for each project?

Which project is preferred, based on NPV$?$

$4.$ Calculate the Internal Rate of Return $($IRR$)$ for each project.

Which project is preferred, based on IRR?

$5.$ Calculate the Modified Internal Rate of Return $($MIRR$)$

Which project is preferred, based on MIRR?