Your division is considering two projects. Your divisions 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.) Please keep two decimals for your results, i.e., 4.55 years, 3.09%, $98.98, etc.

Time 0. 1. 2. 3 . 4

Project A. -1,000. 100. 300. 500. 600

Project B. -1,000. 600. 600. 200. 100

Calculate the Discounted Payback Period of Project A: (14)

Project A
Time Period:	0	1	2	3	4
Cash Flow:	(1,000) or -1,000	100	300	500	600
Discounted Cash Flow:
Cumulative Discounted Cash Flow:

NPV: (8)

Using your financial calculator, calculate the NPV of each project:

NPV_A =

NPV_B =

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:

IRR (8):

Using your financial calculator, calculate the IRR of each project:

IRR_A =

IRR_B =

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: