1. Black Hills Products plans on investing for two mutually exclusive investments whose expected net cash flows are as follows:

	Expected Net Cash Flows
Year	Project A	Project B
0	-$400	-$650
1	-528	210
2	-219	210
3	-150	210
4	1,100	210
5	820	210
6	990	210
7	-325	210

a. Construct NPV profiles for Projects A and B. (2 points)

b. What is each projects IRR? (2 points)

c. If each projects cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice? (2 points)

d. What is each projects MIRR at the cost of capital of 10%? At 17%? (Consider Period 7 as the end of Project Bs life.) (2 points)

e. What is the crossover rate? (2 points)