A company has a 12 percent WACC and is considering two mutually exclusive investments with the following net cash flows:

a. What is each projects NPV? b. What is each projects IRR? c. What is each projects MIRR? d. From your answers to parts a, b, and c, which project would be selected? e. What is each projects MIRR at a WACC of 18 percent?

*Note: solve by showing all the methods and formulas step by step and do not use excel or any other financial calculators

0 1 2 4 6 7 3 + -$100 $134 Project A -$300 Project B -$405 -$387 - $193 $134 $134 $600 $134 5 + $600 $134 $850 $134 -$180 $0