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	$133	$133	$133	$133	$133	$133	$0

A. 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: $

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

Project A: %

Project B: %

C. 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: %

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

Project A or B

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

Project A or B

E. 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 Rate	NPV Project A	NPV Project B
0%	$	$
5
10
12
15
18.1
23.65

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

%

G. 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: %