Your division is considering $2$ investment projects, each which requires an upfront expenditure

of $$27$ million. You estimate the cost of capital is $10\%$ and that the investments will produce

the following after$-$tax cash flows $($in millions of dollars$).$

a$)$ What is the regular payback period for each of these projects? $(5$ marks$)$

b$)$ What is the discounted payback period for each of these projects? $(5$ marks$)$

c$)$ If the projects are independent and the cost of capital is $10\%,$ which project or projects

would you undertake? $(5$ marks$)$

d$)$ If the projects are mutually exclusive and the cost of capital is $5\%,$ which project should

the firm undertake? $(5$ marks$)$

e$)$ If the projects are mutually exclusive and the cost of capital is $15\%,$ which project should

the firm undertake? $(5$ marks$)$

f$)$ Based on the profitability index $($PI$),$ what is your recommendation concerning these

projects if these projects are independent and the cost of capital is $10\%?(5$ marks