Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS Year Project A Project B -$430 -5680 0 1 -528 210 2 -219 210 -150 210 4 1,100 210 5 820 210 6 990 210 7 -325 210 a. Construct NPV profiles for Projects A and B. Select the correct graph. A VPMS) T 1400 B VPV(5) 14001 1200 1200 1000 1000 800 Project B 800 600 Project A 6007 400 400 Project A 200 Project B 2001 Cost of cakes 20 25 -200 -400 25 30 -5 -2007 -400 Costor capllaka 20 D VPMS) 1400 VPVS) 1400 1200 1000 1200 800 1000 800 Project Project A 600 600 400 400 2001 Project B Project B 2004 D VPV(5) 1400 VP (5) T 1400 1200 1200 1000 1000+ 800 Project 800 Project A 600 600 400 400 200 Project B Project B 200 Cost of cakes 20 25 30 -5 -200 -400 20 cost of capitak ogs 25 -5 -200 -4001 The correct graph is -Select- % b. What is each project's IRR? Do not round Intermediate calculations. Round your answers to two decimal places. Project A: Project B: c. Calculate the two projects' NPVs, if each project's cost of capital was 11%. Do not round intermediate calculations. Round your answers to % the nearest cent. Project A: $ Project B: $ Which project, if either, should be selected? -Seleste should be selected c. Calculate the two projects' NPVs, if each project's cost of capital was 11%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ Which project, if either, should be selected? -Select should be selected. Calculate the two projects' NPVS, if each project's cost of capital was 16%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ What would be the proper choice? -Select- is the proper choice. d. What is each project's MIRR at a cost of capital of 11%? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations, Round your answers to two decimal places. Project A: % Project B: % What is each project's MIRR at a cost of capital of 16%? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. % Project A: Project B: % e. What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places. % What is its significance? I. If the cost of capital is less than the crossover rate, both the NPV and IRR methods lead to the same project selections. II. The crossover rate has no significance in capital budgeting analysis. III. If the cost of capital is greater than the crossover rate, both the NPV and IRR methods will lead to the same project selection. -Select