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A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2

A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

0

1

2

3

4

5

6

7

Project A

-$300

-$387

-$193

-$100

$600

$600

$850

-$180

Project B

-$405

$131

$131

$131

$131

$131

$131

$0

A. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project A: $

Project B: $

B. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.

Project A: %

Project B: %

C. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

Discount Rate

NPV Project A

NPV Project B

0%

$

$

5

$

$

10

$

$

12

$

$

15

$

$

18.1

$

$

23.01

$

$

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