A company has an 11 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 $134 Project A -$300 -5387 -5193 -$100 $600 $600 $850 -$180 Project -$405 $134 $134 $134 $134 $134 50 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 As Project : $ b. What is each project's TAR? Do not round Intermediate calculations. Round your answers to two decimal places Project A Project : c. What is mach project's MIRA? (Hint: Consider Period 7 as the end of project b's tre.) Do not round intermediate calculations. Round your answers to two decimal places Project A NE Project : d. From your answers to parts - which project would be selected? If the WACC was 18%, which project would be selected? e. Construct NPV profiles for Projects A and B. If an amount is zero, enter O. 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 NP Project NPV Project $ 0% 5 10 12 15 18.1 23.97 Calculate the crossover rate where the two projects' NPVs are equal. Do not round Intermediate calculations. Round your answer to two decimal places, o What is each project's MERR at a WACC of 1847 Do not round intermediate calculation, Round your answers to two decimal places Project A Project B: A company has an 11 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 $134 Project A -$300 -5387 -5193 -$100 $600 $600 $850 -$180 Project -$405 $134 $134 $134 $134 $134 50 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 As Project : $ b. What is each project's TAR? Do not round Intermediate calculations. Round your answers to two decimal places Project A Project : c. What is mach project's MIRA? (Hint: Consider Period 7 as the end of project b's tre.) Do not round intermediate calculations. Round your answers to two decimal places Project A NE Project : d. From your answers to parts - which project would be selected? If the WACC was 18%, which project would be selected? e. Construct NPV profiles for Projects A and B. If an amount is zero, enter O. 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 NP Project NPV Project $ 0% 5 10 12 15 18.1 23.97 Calculate the crossover rate where the two projects' NPVs are equal. Do not round Intermediate calculations. Round your answer to two decimal places, o What is each project's MERR at a WACC of 1847 Do not round intermediate calculation, Round your answers to two decimal places Project A Project B
