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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

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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 Project A -5300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $133 $133 5133 $133 $133 $133 $0 3. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to the nearest cent. Project A$ Project : $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places Project A Project B: c. What is each project's MIRR? (Hint: Consider Perlod 7 as the end of Project B's ilfe.) Do not round intermediate calculations, Round your answers to two decimal places Project A % Project B: %% d. From your answers to parts a-c, which project would be selected? - Select If the WACC was 18%, which project would be selected? -Select 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 NPV Project. A NPV Project B 09 5 10 12 15 18.1 24.18 Calculate the crossover rate where the two projects' NPVs are equal. Do not round Intermediate calculations, Round your answer to two decimal places, % 9. 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 : %

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