Question: Your division is considering two projects. Its interest rate is 10 percent, and the projects after-tax cash flows (in millions of dollars) would be: (a).

Your division is considering two projects. Its interest rate is 10 percent, and the projects after-tax cash flows (in millions of dollars) would be:

Your division is considering two projects. Its interest rate is 10 percent,

(a). Calculate NPVs for project A and project B

(b). Calculate IRRs for project A and project B

(c). Calculate payback year for project A and project B

O r = 10% mt 1 + Project A: -$30 5 10 15 15 Project B: -$30 8

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