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