c. 11-7 If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10% 15% (Hint: The crossover rate is 7.81%) CAPITAL BUDGETING CRITERIA A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows. 5 0 1 4 Project M Project N 2 + $10,000 $28,000 3 + $10,000 $28,000 -$30,000 -- $90,000 $10,000 $28,000 $10,000 $28,000 $10,000 $28,000 a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project. b. Assuming the projects are independent, which one(s) would you recommend? ng-Term Assets: Capital Budgeting C. If the projects are mutually exclusive, which would you recommend? d. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR? SIDERATIONS A mining company is con be lega