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A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 01234567 Project A-$300-$387-$193-$100$600$600$850-$180Project

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

01234567 Project A-$300-$387-$193-$100$600$600$850-$180Project B-$400$134$134$134$134$134$134$0

What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.

Project A: $

Project B: $

What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.

Project A: %

Project B: %

What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.

Project A: %

Project B: %

From your answers to parts a-c, which project would be selected?

-Select-Project AProject BItem 7

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

-Select-Project AProject BItem 8

Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.

Discount RateNPV Project ANPV Project B0%$ $ 5 10 12 15 18.1 24.51

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

%

What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.

Project A: %

Project B: %

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