Your division is considering two projects. Your division's WACC is 10%, and the projects' after- tax cash flows (in millions of dollars) would be as follows: (Time Period is in terms of years.) Time Project A Project B 0 ($30) ($40) 1 $5 $6 2 $ 10 $10 3 $15 $14 $20 $20 Calculate the Payback period of each project: Project A Time period: Cash flow: (30) 5 10 15 Cumulative cash flow: Payback period of Project A = Project B Time period: Cash flow: (40) 6 10 Cumulative cash flow: Payback period of Project B = Calculate the Discounted Payback period of each project: Project A Time period: Cash flow: (30) Discounted cash flow: Cumulative discounted cash flow: Discounted Payback period of Project A= Project B Time period: Cash flow: (40) Discounted cash flow: Cumulative discounted cash flow: How should you interpret Project B's cumulative discounted cash flow? (Hint: Remember the cumulative cash flow tells you how long time it takes for the project to recover the initial cost.) Using your financial calculator, calculate the NPV of each project: NPVA= NPVB = According to NPV, if they are independent projects, which project (or projects) should your division accept? If they are mutually exclusive projects, which project (or projects) should your division accept? If they are independent projects: If they are mutually exclusive projects: Now if CF4 of Project B is $25 million, as shown below: Time Project A Project B 0 $30) ($40) 1 $5 $6 2 $ 10 $10 3 $15 $14 4 $20 $25 Using your financial calculator, calculate the NPV of project B given the updated CFs. NPVB = Using your financial calculator, calculate the IRR of each project: IRRA = IRRB = According to IRR, if they are independent projects, which project (or projects) should your division accept? If they are mutually exclusive projects, which project (or projects) should your division accept? If they are independent projects: If they are mutually exclusive projects