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	-$400	$135	$135	$135	$135	$135	$135	$0

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

Project A: $

Project B: $

• What is each project's IRR? Round your answer to two decimal places.

  Project A:

  Project 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:

• From your answers to parts a-c, which project would be selected?

  _________

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

  _________

• 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	$ fill in the blank 16	$ fill in the blank 17
  15	$ fill in the blank 18	$ fill in the blank 19
  18.1	$ fill in the blank 20	$ fill in the blank 21
  24.83	$ fill in the blank 22	$ fill in the blank 23

• Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations.

  _

• What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

  Project A: _

  Project B: _