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1 Video Excel Online Structured Activity: Capital budgeting criteria A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be

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1 Video Excel Online Structured Activity: 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: 0 1 2 3 4 5 6 7 Project $300 -5387 $193 -$100 $600 $600 $850 -$180 Project B -$405 $133 $133 $133 $133 $133 $133 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations Project A: $ 162.47 Project B: $ 134,67 b. What is each project's IRR? Round your answer to two decimal places Project A 225 % Project B: 24.29 9 c. What is each project's MIRRT (Hint: Consider Period 7 as the end of Project B$ 36.) Round your awer to two decimal bloces. Do not round your wtedy calculations Project A 10.63 Project B: 10.41 d. From your answers to parts a which project would be selected? Pored A If the WACC was 18%, which project would be selected Prod By e Construct NPV profiles for Projects A and B. Round your answers to the newest cont. Do not round your intermediate calculations. Negative value should be indicated by a mission Discountate NEVADA NEY.Proiect 5 405 5 300 5 5 500 5 20.02 10 182.00 12 $ 200.40 5 150.03 15 9206 5 105.90 11 $ 02020 $ 65.96 Discount Rate NPV Project $ 890 NPV Project B $ 405 09 5 5 540 $ 280.02 10 5 283.34 $ 182.96 12 $ 200.40 $ 150.03 15 $ 92.96 $ 105.90 18.1 $ -0.090 $ 65.96 23.65 $ - 143.39 $ 0.023 t Calculate the crossover rate where the two projects NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. 38.11 g. What is each project's MIRR at a WACC of 18%7 Round your answer to two decimal places: Do not round your intermediate calculations. Project A 10.63 % Project B: 10.41

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