CAPITAL BUDGETING CRITERIA A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows

0 1 2 3 4 5 6 7

Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180

Project B -$405 $135 $135 $135 $135 $135 $135 $0

What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project A $

Project B $

What is each project's IRR? Round your answer to two decimal places.

Project A %

Project B % What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.

Project A %

Project B %

Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

Discount Rate NPV Project A NPV Project B

0%

5

10

12

15

18.1

24.29

Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations.

What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

Project A %

Project B %