A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180

Project B -$400 $133 $133 $133 $133 $133 $133 0

a. what is each projects NPV? round to the nearest cent.

project a $

project b $

b. what is each projects IRR? round your answer to two decimal places.

project a %

project b %

c. what is each projects MIRR? (hint: consider period 7 as the end of project b life.) round your answer to two decimal places.

project a %

project b %

d. from the answers on parts a - c which project would be selected?

project a or project b

If WACC was 18% which project would be selected?

project a or project b