2 3 You are considering an investment in two projects, A and B. Both projects will cost $100,000, and the projected cash flows are as follows: Year Project A Project B $ 6,250 $ 45,000 2 18,750 33,750 35,000 25.000 43,750 18,750 50,000 12,500 Assuming that the WACC is 8%, calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR. If the projects are mutually exclusive, which project should be selected? b. Create an NPV profile chart for projects A and B. What is the exact crossover rate for these two projects? 4 5 Project A Project B Year 0 1 2 3 4 S Discount Rate Payback Period Discounted Payback NPV IRR Crossover Rate