A company has a $12\%$ WACC and is considering two mutually exclusive investments $($that cannot be repeated$)$ with the following

cash flows:

Project A$.$

Project B

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 nearest cent.

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:

$\%$

c$.$ What is each project's MIRR? $($Hint: Consider Period $7$ as the end of Project B$\text{'}$s life.$)$ Do not round intermediate calculations.

Round your answers to two decimal places.

Project A:

$\%$

Project B:

$\%$

d$.$ From your answers to parts $a-c_r$ which project would be selected?

If the WACC was $18\%,$ which project would be selected?

e$.$ Construct NPV profiles for Projects A and B$.$ If an amount is zero, enter $0.$ Negative values, if any, should be indicated by a

minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.

Discount Rate

NPV Project A

$0\%$

$

$5$

$10$

$12$

$15$

$18\mathrm{.}1$

$24\mathrm{.}83$

NPV Project B

$5$

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:

$\%$