Your division is considering two investment projects Project A requires an upfront expenditure of $34 million Project b requires an upfront expenditure of $31 million You assume also that the investments will produce the following after tax cash flows (in million of dollars) Project A Project B 3 22 10 10 8 20 Year 1 2 3 4 15 6 a/Construct NPV profiles for projects A and B. b/ According to w/ If the cost of capital is 10%, which project should be selected if they are mutually exclusive? c/Calculate the MIRR for each project. Which project should be selected if they are mutually exclusive? Question: What are the problems with the payback period Why do some managers use the discounted payback period