Question
. ACME Industries is considering two mutually exclusive projects with the following net cash flows: Expected net cash flows Time Project A Project B 0
. ACME Industries is considering two mutually exclusive projects with the following net cash flows:
Expected net cash flows
Time Project A Project B
0 ($375) ($575)
1 ($300) $190
2 ($200) $190
3 ($100) $190
4 $600 $190
5 $600 $190
6 $926 $190
7 ($200) $0
a) What is each projects NPV @ 12% cost of capital? NPVA= NPVB=
Calculation:
b) What is each projects IRR? IRRA= IRRB=
Calculation:
c) What is the crossover rate? Rate=
Calculation:
d) What is each projects MIRR @ 12%? MIRRA= MIRRB=
Calculation:
Please show the calculations also with the answers.
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