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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: 0 1

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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: 0 1 2 3 4 5 6 7 + Project A Project B -$300 -$387 -$400 $132 -$193 -$100 $600 $132 $132 $132 $600 $132 $850 $132 -$180 $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: $ 162.48 Project B: $ 127.68 b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: 18.1 % 23.86 % 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: 15.60 % Project B: 17.56 % d. From your answers to parts a-c, which project would be selected? Project A If the WACC was 18%, which project would be selected? Project 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% S 890 S 387 5 540.09 285.22 10 283.34 169.89 12 200.41 137.71 15 92.96 94.55 18.1 -.09 55.50 23.86 124.29 .01 f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. 14.92 % 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: 18.05 % Project B: 20.23 %

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