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 0 -$400 - $650 1 -528 210 2 -219 210 3 - 150 210 4 1,100 210 5 820 210 6 990 210 7 -325 210 a. Select the correct graph for NPV profiles for Projects A and B. A B VPVS) 1 1400 VPVS) 1400 1200 1200 1000 1000 800 800 Project A Project A 600 600 400 400 Project B 200 200 Project B Cost of capitak ons 20 25 30 20 25 30 -5 -200 -400 1 -5 Cost of capital -200 -400 1 D VPV($) 1400 VPVC5) 14001 1200 1200 1000 1000 800 Project A 800 Project B 600 600 400 400 Project B Project A 200 2001 20 Cost of capitak capitak ons 20 -5 -200 -400 Cost of capital -5 -2007 -4001 The correct graph is graph AV b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: 20.65 % Project B: 25.84 % c. Calculate the two projects' NPVs, if each project's cost of capital was 10%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ 479 Project B: $ 372 Which project, if either, should be selected? Project A should be selected. Calculate the two projects' NPVs, if each project's cost of capital was 17%. Do not round intermediate calculations. Round your Project A should be selected. Calculate the two projects' NPVs, if each project's cost of capital was 17%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ 135 Project B: $ 174 What would be the proper choice? Project AV is the proper choice. d. What is each project's MIRR at a cost of capital of 10%? (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: 1,173. % Project B: % What is each project's MIRR at a cost of capital of 17%? (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: -100 % e. What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places. 14.76 % What is its significance? I. The crossover rate has no significance in capital budgeting analysis. II. If the cost of capital is greater than the crossover rate, both the NPV and IRR methods will lead to the same project selection. III. If the cost of capital is less than the crossover rate, both the NPV and IRR methods lead to the same project selections