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

What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project A: $

Project B: $

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

Project A: Project B:

From your answers to parts a-c, which project would be selected? Project A or Project B?

If the WACC was 18%, which project would be selected? Project A or Project 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.

Discount Rate (0, 5, 10, 12, 15, 18.1, 23.97)

NPV Project A

NPV Project B

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: