11-17 CAPITAL BUDGETING CRITERIA A company has an 11% 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 $850 Project A Project B -$300 -$405 -$387 $134 -$193 $134 -$100 $134 $600 $134 $600 $134 -$180 $0 $134 a. What is each project's NPV? b. What is each project's IRR? c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) d. From your answers to parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected? e. Construct NPV profiles for Projects A and B. f. Calculate the crossover rate where the two projects' NPVs are equal. g. What is each project's MIRR at a WACC of 18%