Capital Budgeting Criteria

  XYZ Inc. is considering two projects. Its WACC is 12 percent, and the projects' after-tax cash flows (in millions of dollars) would be as follows: 01234Project A-$30$5$10$15$20Project B-$30$20$10$8$6 Calculate the projects' NPVs, IRRs, MIRRs, regular paybacks, and discounted paybacks. How might conflicts exist between the NPV and the IRR when independent projects are evaluated? Explain your answer.