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	-$400	$131	$131	$131	$131	$131	$131	$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.

Project A NPV: $ 200.41

Project B NPV: $ 138.59

Project A MIRR: 15.10%

Project B MIRR: 16.86%

- What is each project's IRR? Round your answer to two decimal places.

Project A: __%

Project B: __%

- From the above answers, which project would be selected?

If the WACC was 18%, which project would be selected?

- 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.

- Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations.

- 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: __%

Discount Rate NPV Project A NPV Project B 0% $ $ 5 $ $ $ $ 10 2 12 A 15 $ $ 18.1 23.54 $ $