Year	0	1	2	3	4
Project A	-27	5	10	15	20
Cumulative Cash flows	-27	-22	-12	3	23
Payback Period = Year before cash flows become positive + (- Cumulative cash flow of Year 3/Cash flow of Project A for Year 4)	2.25	Years
Year	0	1	2	3	4
Project B	-27	20	10	8	6
Cumulative Cash flows	-27	-7	3	11	17
Payback Period = Year before cash flows become positive + (- Cumulative cash flow of Year 1/Cash flow of Project A for Year 2)	1.70	Years

Regular Payback perod of A = 2.25 Regular Payback perod of B = 1.70

Discount rate	11%
Year	0	1	2	3	4
Project A	-27	5	10	15	20
Discounted Cash = Cash flow/(1+discount rate)^n	-27	4.504505	8.116224	10.96787	13.17462
Cumulative Discounted Cash flow	-27	-22.4955	-14.3793	-3.4114	9.763219
Discounted Payback Period = Year before cash flows become positive + (- Discounted Cumulative cash flow of Year 3/Cash flow of Project A for Year 4)	3.26	Years
Discount rate	11%
Year	0	1	2	3	4
Project B	-27	20	10	8	6
Discounted Cash = Cash flow/(1+discount rate)^n	-27	18.01802	8.116224	5.849531	3.952386
Cumulative Discounted Cash flow	-27	-8.98198	-0.86576	4.983773	8.936159
Discounted Payback Period = Year before cash flows become positive + (- Discounted Cumulative cash flow of Year 2/Cash flow of Project A for Year 3)	2.15	Years

Discounted Payback Period of A = 3.26 Discounted Payback Period of B = 2.15

		A	B	C	D	E
	Year	0	1	2	3	4
1	Project A	-27	5	10	15	20
2	Discount rate	11%
	NPV	9.76	NPV(A2,B1:E1)+A1
		A	B	C	D	E
	Year	0	1	2	3	4
1	Project B	-27	20	10	8	6
2	Discount rate	11%
	NPV	8.94	NPV(A2,B1:E1)+A1

Since they are independent project both projects should be undertaken.

		A	B	C	D	E
	Year	0	1	2	3	4
1	Project A	-27	5	10	15	20
2	Discount rate	5%
	NPV	16.24	NPV(A2,B1:E1)+A1
		A	B	C	D	E
	Year	0	1	2	3	4
1	Project B	-27	20	10	8	6
2	Discount rate	5%
	NPV	12.96	NPV(A2,B1:E1)+A1

Since they are mutually exclusive projects Project A should be undertaken as it has higher NPV

		A	B	C	D	E
	Year	0	1	2	3	4
1	Project A	-27	5	10	15	20
2	Discount rate	15%
	NPV	6.21	NPV(A2,B1:E1)+A1
		A	B	C	D	E
	Year	0	1	2	3	4
1	Project B	-27	20	10	8	6
2	Discount rate	15%
	NPV	6.64	NPV(A2,B1:E1)+A1

Since they are mutually exclusive projects Project B should be undertaken as it has higher NPV.

I need e-g please

Problem 10-21 Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of$27 million. You estimate that the cost of capital is 11% and that the investments will produce the following after-tax cash flows (in millions of dollars): (17 points) Project A Project B 20 10 8 6 Year 10 15 20 4 a. What is the regular payback period for each of the projects? Round your answers to two decimal places Project A years Project B years b. What is the discounted payback period for each of the projects? Round your answers to two decimal places. Project A years Project B years c. If the two projects are independent and the cost of capital is 11%, which project or projects should the firm undertake? Select d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? -Select