A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 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. Open spreadsheet a. What is each project's NPY? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: 5 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: 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. 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. 9. 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: Capital budeting criteris Wisce Broiect A : Propet 8 Project NPY Calculatione: NiPy/ Project iRR Cakslations: 904 Propect Mike Cusulatians Mire. Amematively Moifi can be cakculated as: Proied A Wo of year 1 ovisow YPV ol Yearz. Oudion 1. Prever year 7 Guitiom. AMematively, Mier eas be calculated as: NPV Profiles Calculation of Crossover Rate: A company has a 11% WACC and is considering two mutually exclusive investments (that rannot be repeated) with the following cash flows: Ine data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below, Open spreadsheet a. What is each project's NPV? Round your aniswer 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: 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. 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. % 9. 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
