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A company has an 1 1 % WACC and is considering two mutually exclusive investments ( that cannot be repeated ) with the following cash
A company has an WACC and is considering two mutually exclusive investments that cannot be repeated with the following cash flows:
Project A $$$$ $ $ $$
Project B $ $ $ $ $ $ $ $
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 as the end of Project Bs life. Do not round intermediate calculations. Round your answers to two decimal places.
Project A:
Project B:
From your answers to parts ac which project would be selected?
If the WACC was which project would be selected?
Construct NPV profiles for Projects A and B If an amount is zero, enter 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
$ $
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 Do not round intermediate calculations. Round your answers to two decimal places.
Project A:
Project B:
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