Your firm is considering two projects that are mutually exclusive. The forecast yearly cash flows are shown below.

a) Calculate the payback period (undiscounted) of each project. Include fractional periods (e.g., x.xx years) in your response, if applicable.

b) Calculate the IRR of each project. Provide your answer rounded to two decimal places (e.g., X.XX%)

c) Calculate the Modified IRR (MIRR) of each project using an 8% discount rate. Provide your answer rounded to two decimal places (e.g., X.XX%)

d) Calculate the NPV of each project at discount rates of 0%, 5%, 10%, and 15%).

e) Calculate the incremental IRR (i.e., the cross-over rate) and construct an NPV profile graph to illustrate how the choice between the projects depends on the discount rate. Indicate when you should accept each project, making sure that you are explicit about the conclusions to be drawn from the NPV profile and provide specific numbers. (Do X if ; do Y if ; do Z if)

\begin{tabular}{lrr} Time & Project A & Project \\ \hline 0 & (400,000) & \\ 1 & (50,000) \\ 2 & 140,000 \\ 3 & 200,000 \\ 4 & 250,000 \end{tabular} (400,000) 200,000 125,000 95,000 80,000 \begin{tabular}{lrr} Time & Project A & Project \\ \hline 0 & (400,000) & \\ 1 & (50,000) \\ 2 & 140,000 \\ 3 & 200,000 \\ 4 & 250,000 \end{tabular} (400,000) 200,000 125,000 95,000 80,000