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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Projects -$1,000 $897.71 $240

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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Projects -$1,000 $897.71 $240 $15 $10 Project L - $1,000 $0 $240 $420 $802.06 The company's WACC I 10.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR) Round your answer to two decimal places. % A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 2 3 4 5 6 7 0 1 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -5405 $135 $135 $135 $135 $135 $135 $0 2. 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 Ats Project B: 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 life.) Do not round Intermediate calculations. Round your answers to two decimal places Project A % Project B: % d. From your answers to parts ac, which project would be selected? -Select 1f the WACC was 18%, which project would be selected? -Select- o. 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 NPV Project B 0% $ $ 5 10 12 15 18.1 24.29 1. 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 dedmal places Project A % Project B 95

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