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 -$400 $131 $131 $131 $131 $131 $131 $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

0% $

$

5

10

12

15

18.1

23.54

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:

%