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a company has an 11% WACC and is considering two mutually exclusive investments (that canbot be repeated) with the following cash flows: A company has
a company has an 11% WACC and is considering two mutually exclusive investments (that canbot be repeated) with the following cash flows:
A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: Project f Project: a. 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 t mearest cent Project A:s Project 8:$ 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 Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. d. From your answers-to ports d-c, which project would be selected? If the WACC wat 18%, which project would be selected? e. Construct NPY 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. NPIV Proiect B d. From your answers to parts a-cy, which project would be-selected? If the WACC was 18%, which project would be selected? e. Construct NPV profies for Projects A and B. If an amount is tero, enter 0 . Negative values, if any, should be indicated by a minus ilgen, Do not round intermediate calculations. Round your answers to the nearest cent. 1. Calculate the crossover rate where the bwp projects' NpVs are equal. Do not round intermediate calculations. Round your answer to two decirnal placits. 9. What is each brogect's MtRRiat a WACC of 1096? Do not round Intermodiate calcilations. Round your answers to two decimal placees. Project A Project in Step by Step Solution
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