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chp 11 excel file not needed pls ignore that attachment A company has a 13% WACC and is considering two mutually exclusive Investments that cannot
chp 11 excel file not needed pls ignore that attachment
A company has a 13% WACC and is considering two mutually exclusive Investments that cannot be repeated) with the following cash flows: 1 2 4 5 6 7 0 3 + Project A -$300 -5387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $131 $131 $131 $131 $131 $131 $0 The data has been collected in the Microsoft Excel Online fille below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is each project's NPV7 Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: Project B: 5 b. What is each project's IRR? Round your answer to two decimal places. Project A: Project B: 6. 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: 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 sign. Discount Rate NPV Project A NPV Project B $ $ 096 5 $ $ 10 $ $ 12 $ $ 15 $ $ 18.1 $ $ 23.54 $ $ 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. 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 sign Discount Rate NPV Project A NPV Project 0% $ $ 5 $ $ 10 $ $ 12 $ $ 15 $ $ 18.1 1 23:54 $ 1. Calculate the crossover rate where the two projectw' NPVs are equal, Round your answer to two decimal places. Do not round your intermediate calculations Q. What is each project's MRR at a WACC of 1847 Round your answer to two decimal places. Do not round your intermediate calculations Project A: Project B: Capital budgeting criteris WACC 13.00% 16 Project $300 1 -8387 -5193 5900 5600 5000 $400 5131 5131 5131 11 5131 113 30 Formules Project 9 10 11 Project NPV Calculation 12 NPVA 13 14 NPV, 15 16 Project In Calculations 17 RR ANA BA 19. IRR 20 21 Project MR Calculations 22 MIRRA 23 Alternatively, can be cateulated as 26 Pront 27 20 PV of Yoar 1 Othew 129 PV of Year Outlow 10 PV of You 3 Otto 31 PV of War Outlow 32 $300 $100 1000 10 Formula WA WA Step by Step Solution
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