Capital Budgeting Tools Gardial Fisheries is considering two mutually exclusive investment. The project's expected net cash flows are as follows: Year 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 -100 0 a. If each projects cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? b. Construct NPV profiles for projects A&B. c. What is each projects IRR ? d. What is the crossover rate and what is its significance? e. What is each projects MIRR a cost of capital 12%, at r=18%? (hint: consider period 7 as the end of Project Bs life). f. What is the regular payback period for these two projects? g. At a cost of 12%, what is the discounted payback period for these two projects? h. What is the profitability index for each project , if the cost of capital is 12%