A company has a 12% 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	-$405	$134	$134	$134	$134	$134	$134	$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.

Open spreadsheet

• What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3
• What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4 % Project B: fill in the blank 5 %
• 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: fill in the blank 6 % Project B: fill in the blank 7 %
• From your answers to parts a-c, which project would be selected? Project AProject B If the WACC was 18%, which project would be selected? Project AProject B
• 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.

g Discount Rate	h NPV Project A	i NPV Project B
j 0%	k $ fill in the blank 10	l $ fill in the blank 11
m 5	n $ fill in the blank 12	o $ fill in the blank 13
p 10	q $ fill in the blank 14	r $ fill in the blank 15
s 12	t $ fill in the blank 16	u $ fill in the blank 17
v 15	w $ fill in the blank 18	x $ fill in the blank 19
y 18.1	z $ fill in the blank 20	a $ fill in the blank 21
b 23.97	c $ fill in the blank 22	d $ fill in the blank 23

e

• Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. fill in the blank 24 %
• 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: fill in the blank 25 % Project B: fill in the blank 26 %