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11. homework A company has a 12% WACC and is considering two mutually exclusive investments that cannot be repeated) with the following cash flows: 0
11.
homework A company has a 12% WACC and is considering two mutually exclusive investments that cannot be repeated) with the following cash flows: 0 1 2 3 5 6 4 Project A -$300 - $387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $133 $133 $133 $133 $133 $133 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations Round your answers to the nearest cent. Project A: $ Project B: $ 5. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decinal places. Project A: % Project B: % c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: 96 Project B: 96 d. From your answers to parts a-c, which project would be selected? -Select- If the WACC was 18%, which project would be selected? -Select Step by Step Solution
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