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12-25) Build a Model: Capital Budgeting Tools Start with the partial model in the file Ch12 P25 Build a Model.xlsX on the textbook's Web site.

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12-25) Build a Model: Capital Budgeting Tools Start with the partial model in the file Ch12 P25 Build a Model.xlsX on the textbook's Web site. Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: a. If each project's cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? b. Construct NPV profiles for Projects A and B. c. What is each project's IRR? d. What is the crossover rate, and what is its significance? e. What is each project's MIRR at a cost of capital of 12% ? At r=18% ? f. What is the regular payback period for these two projects? g. At a cost of capital of 12%, what is the discounted payback period for these two projects? h. What is the profitability index for each project if the cost of capital is 12%

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