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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

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 $135 $135 $135 $135 $135 $135 $0

What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project A $ 162.48

Project B $ 134.67

What is each project's IRR? Round your answer to two decimal places.

Project A %18.10

Project B %24.29

What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.

Project A % need this anaswer

Project B %17.73

If the WACC was 18%, which project would be selected? -Select-Project AProject BItem 8

Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

Discount Rate NPV Project A NPV Project B
0% $ 890 $ 405
5 540.09

280.22

10 283.34 182.96
12 200.41 150.04
15 92.96 105.91
18.1 -.09 65.97
24.29 -143.39 .02

Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % need this answer

What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

Project A % need this answer

Project B % need this answer

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