Your company is considering 2 projects. Its WACC is 10% and the projects' after tax cash flows are as follows:
|
Year
|
Project A
|
Project B
|
|
0
|
-$30
|
-$30
|
|
1
|
$5
|
$20
|
|
2
|
$10
|
$10
|
|
3
|
$15
|
$8
|
|
4
|
$20
|
$6
|
Calculate the projects' NPV's, IRR's, MIRR's, Regular payback and discounted payments. Which project(s) should be chosen if they are independent? What if they are mutually exclusive?