Question: Your division is considering two investment pro ects, each o which requires an up front expenditure of $27 million You estimate at the cost o

Your division is considering two investment pro ects, each o which requires an up front expenditure of $27 million You estimate at the

Your division is considering two investment pro ects, each o which requires an up front expenditure of $27 million You estimate at the cost o capital S 2 % and that he investments will produce the following after-tax cash flows (in millions of dollars): Year Project A Project B 20 10 15 20 10 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 years Project B years f. What is the crossover rate? Round your answer to two decimal places g. If the cost of capital is 12%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places Project A Project B

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