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A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: Project A Project

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A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: Project A Project B 0 1 Select v 2 % 3 4 % 5 -$300 -$387 -$193 -$100 $600 $600 $850 -$400 $133 $133 $133 $133 $133 $133 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: d. From your answers to parts a-c, which project would be selected? 6 Project A: S 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. 7 -$180 $0 If the WACC was 18%, which project would be selected? -Select- 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. NPV Project A Discount Rate 0% 5 10 12 15 18.1 24.18 $ % f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. NPV Project B 9. 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: % % Raining now (8) 3:13 6/25

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