Your firm is considering two projects that are mutually exclusive. Each project will require an initial outlay of $200,000. The forecast yearly cash flows are shown below.

Time	Project A	Project B
0	-200,000	-200,000
1	-25,000	120,000
2	80,000	80,000
3	100,000	40,000
4	140,000	25,000

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.

c) Calculate the Modified IRR (MIRR) of each project using an 8% discount rate.

d) Calculate the NPV of each project at discount rates of 0%, 4%, 10%, and 16%).

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)