Capital budgeting criteria WACC Project A Project B Project NPV Calculations: NPVA NPVB Project IRR Calculations: IRRA IRRB Project MIRR Calculations: MIRRA Alternatively, MIRR RA can be calculated as: Project A PV of Year 1 Outflow PV of Year 2 Outflow PV of Year 3 Outflow PV of Year 7 Outflow Sum of Outflow PVs PV PMT FV I/YR=MIRRA MIRRB 11.00% $3000 $400 $133 $133 \#N/A \#N/A \#N/A \#N/A $3 7 $0.00 0 Formulas $600 6 $133 $133 $0 Formulas \#N/A \#N/A \#N/A FV of Year 6 Inflow at Year 7 FV of Year 5 Inflow at Year 7 FV of Year 4 Inflow at Year 7 Sum of Inflow FVs \#N/A \#N/A a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: \$ Project B: \$ b. What is each project's IRR? Round your answer to two decimal places. Project A: % Project B: % c. 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: % d. From your answers to parts a-c, which project would be selected? If the WACC was 18%, which project would be selected? e. 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 f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % g. 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: %