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25 Keep the Highest 16. Problem 11.17 (Capital Budgeting Criteria) Problem Walkthrough A company has an 11% WACC and is considerng two mutually exclusive investments

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25 Keep the Highest 16. Problem 11.17 (Capital Budgeting Criteria) Problem Walkthrough A company has an 11% WACC and is considerng two mutually exclusive investments that Project A -$405 -$387 $135 $193 $135 -$100 $135 $600 $135 $600 $135 $950 $135 $180 50 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate caldations. Round your answers to the Project A: 5 Project B:$ b. What is each project's IRA? Do not found intermediate calculations. Round your answers to two decimal places Project Project B: What is each project's MIRRTH Corder Period 7 as the end of Project B's Me.) Do not round intermediate calculations. Round your answers to deomal places Project A: Project 6: d. From your answers to parts - which project would be selected? If the WACC w 10%, which project would be selected? Construct NPV profiles for Projects A and B. If an amount is zero, enter O. Negative values, if any, should be indicated by a minus . Dentround intermediate a Round your answers to the nearestent Discount Bate hey Pro 1. Calculate the crossover rate where the projects NPVs are all Do not found intermediate calculations, Round your answer to the doma place 4. Wat each proget's MIRR at a WACC of 1897 Do not round intermediate calculations. Round your answers to two decal places 16. Problem 11.17 (Capital Budgeting Criteria) ebook Problem Walk-Through A company has a 115 WACC and is considering two y exdlusive investments that cannot be repeated with the following cash flows: $180 Project A Project -$300 $405 $387 $135 $193 $135 $100 135 $600 135 5600 $135 $850 $135 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 nearestent Project A: $ Project Bus What is each project's Do not undermediate calculations. Round your answer to two decimales Project: Pret What is each project's H i Consider Period as the end of Projects ) Do not found intermediate calculation Round your answers to two decimal places Projects Project d. From your answers to parts which project would be selected? Select the WACC was , which project w e wted Construction profiles for Pets Ad amount is , energ ewe, otround a n d newer to the near V Pro MPY Project: Project B

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