What is the modified irr of each project

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Our division is considering two investment projects, each of which requires an up-front expenditure of $24 million. You estimate that the cost of capital is 10% and that the investments will produce the following after-tax cash flows (in millions of dollars): (10 points) Year Project A Project B 1 5 20 2 10 10 3 15 8 4 20 6 What is the regular payback period for each of the projects? Round your answers to two decimal places. Project A years Project B years What is the discounted payback period for each of the projects? Round your answers to two decimal places. Project A years Project B years If the two projects are independent and the cost of capital is 10%, which project or projects should the firm undertake? If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake? What is the crossover rate? Round your answer to two decimal places. % If the cost of capital is 10%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places. Project A % Project B %.

Reference no: EM131551170

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