0 1 2 CAPITAL BUDGETING CRITERIA A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 3 4 5 6 7 H + + Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $135 $135 $135 $135 $135 $135 $0 a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A $ Project B $ b. What is each project's IRR? Round your answer to two decimal places. Project A % Project B % C. 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 % e. 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 24.29 f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % g. 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 %