{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T11:06:15-04:00", "answer_date": "2024-05-25 11:06:15", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1683346", "url": "\/study-help\/questions\/a-company-has-a-11-wacc-and-is-considering-two-1683346", "question_creation_date_js": "2024-05-25T11:06:15-04:00", "question_creation_date": "May 25, 2024 11:06 AM", "meta_title": "[Solved] A company has a 11% WACC and is consideri | SolutionInn", "meta_description": "Answer of - A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the foll | SolutionInn", "meta_keywords": "company,11%,wacc,two,mutually,exclusive,investments,repeated,cash,flows,1,2", "question_title_h1": " A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1", "question_title": " A company has a 11% WACC and is considering two mutually", "question_title_for_js_snippet": "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 50 6 7 Project A Project B $300 $400 $387 $193 $135 $135 $100 $135 $600 $600 $850 $135 $135 $180 $135 $0 The data has been collected in the Microsoft Excel Online file below Open the spreadsheet and perform the required analysis to answer the questions below X Open spreadsheet 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 IRR Round your answer 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's life ) Round your answer to two decimal places Do not round your intermediate calculations 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 e 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 A $ 18 1 24 83 f Calculate the crossover rate where the two projects' NPVs are equal Round your answer to two decimal places Do not round your intermediate calculations f Calculate the crossover rate where the two projects' NPVs are equal Round your answer to two decimal places Do not round your intermediate calculations g 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 ", "question_description": "\"image\"image\"image\"image", "transcribed_text": "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 50 6 7 Project A Project B -$300 -$400 -$387 -$193 $135 $135 -$100 $135 $600 $600 $850 $135 $135 -$180 $135 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet 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 IRR? Round your answer 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's life.) Round your answer to two decimal places. Do not round your intermediate calculations. 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? e. 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 +A $ 18.1 24.83 f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % g. 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: %", "related_book": { "title": "The Changing Geography Of Banking And Finance", "isbn": "1441947205, 978-1441947208", "edition": "1st Edition", "authors": "Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/03\/66050c9f889e3_94366050c9f62f22.jpg", "uri": "\/textbooks\/the-changing-geography-of-banking-and-finance-1st-edition-978-1441947208-260622", "see_more_uri": "" }, "free_related_book": { "isbn": "1539354857", "uri": "\/textbooks\/the-ultimate-guide-to-launching-a-modern-business-phone-system-even-if-you-are-not-tech-savvy-modern-telephone-communications-for-todays-entrepreneur-1st-edition-9781539354857", "name": "The Ultimate Guide To Launching A Modern Business Phone System Even If You Are Not Tech Savvy Modern Telephone Communications For Todays Entrepreneur", "edition": "1st Edition" }, "question_posted": "2024-05-25 11:06:15", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/financial-accounting\/the-accounting-records-for-the-skate-shed-inc-reflected-the-807619", "description": "The accounting records for The Skate Shed, Inc., reflected the following amounts at the end of January 2018: Prepare The Skate Shed?s multistep income statement for the fiscal year ended January 31,...", "stars": 3 }, { "url": "\/a-random-sample-of-n-7-observations-from-a", "description": "A random sample of n = 7 observations from a normal population produced the following measurements: 4, 0, 6, 3, 3, 5, 9. 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