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A company has a 125 WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2

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A company has a 125 WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 5 2 Project A -$300 -5193 -$100 $600 $600 $850 -$180 Projects -$405 $135 $135 $135 $135 $135 $135 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 AS Project : b. What is each project's IRR? Do not round Intermediate calculations, Round your answers to two decimal places Project A Project: c. What is cach 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 d. From your answers to parts -c, which project would be selected? If the WACC was 18%, which project would be selected? e. Construct NPV profiles for Projects A and B. If an amount is zero, enter O. 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 If the WACC was 18, which project would be selected a minus sign. Do not round intermediate calculations, Round your e. Construct NPV profiles for Projects A and B. an amount is zero, enter 0. Negative values, if any, should be indicated answers to the nearest cent. NPV Project A NPV Project $ $ Discount Rate ON 5 10 12 15 24.29 t. Calculate the crossover rate where the two projects' NPVs are equal. Do not round Intermediate calculations, Round your answer to two decimal places. 9. What is each project's MIRR at WACC of 18%. Do not round intermediate calculations. Round your answers to two decimal places. Project A Project

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