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5. Problem 11.17 (Capital Budgeting Criteria) A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the
5. Problem 11.17 (Capital Budgeting Criteria) A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: Project A Project B Project A:$ Project B:$ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: % % Project A : % Project B: % d. From your answers to parts a-c, which project would be selected? If the WACC was 18%, which project would be selected? d. From your answers to parts a-c, which project would be selected? If the WACC was 18%, which project would be selected? answers to the nearest cent. f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. % g. What is each project's MIRR at a WACC of 18% ? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B : %
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