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. 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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