Regular paybacks and discounted paybacks

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Capital Budgeting Criteria

Your division is considering two projects. its WACC is 10% and the projects after tax cash flow ( in mllions of dollars) would be as follow:

0 1 2 3 4

Project A -30 $5 $10 $15 $20

Project B -30 $20 $10 $8 $6

A) Calculate the projects NPVs, IRRs,MIRRs, regular paybacks, and discounted paybacks.

B) If the two projects are independent, which projects should be chosen?

C) If the two projects are mutually exclusive and the WACC is 10% , which project should be chosen?

Please provide answers clear to understand and in excel format.

Reference no: EM131896790

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