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A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be...

A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: (PLEASE ANSWER FULL QUESTIONS)

0 1 2 3 4 5 6 7
Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180
Project B -$400 $131 $131 $131 $131 $131 $131 $0
  1. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

    Project A: $  

    Project B: $  

  2. What is each project's IRR? Round your answer to two decimal places.

    Project A: %

    Project B: %

  3. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.

    Project A: %

    Project B: %

  4. From your answers to parts a-c, which project would be selected?

    _________Project AProject B

    If the WACC was 18%, which project would be selected?

    _________Project AProject B


  5. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

    Discount Rate NPV Project A NPV Project B
    0% $   $  
    5 $   $  
    10 $   $  
    12 $   $  
    15 $   $  
    18.1 $   $  
    23.54 $   $  
  6. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations.

    %

  7. What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

    Project A: %

    Project B: %

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