A company has a 13% 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

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-

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

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

5

10

12

15

18.1

23.65

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: _____ %