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. Construct NPV profiles for Projects A and B. Select the correct graph. A B VPV (5) VPW(S) 1400 1400 1200 1200 1000 1000 800 Project A 800 Project B 600 600 400 400 Project B Project A 200 200 20 5 5 20 25 -5 -200 -400 Cost of capitales Cost of capitako -5 -200 -400 D VPVS) 1 1400 VPV (5) T 1400 1200 1200 1000 1000 800 800 Project A Project A 600 600 400 400 Project B 200 200 Project B 20 25 30 15 20 25 30 -5 -200 Cost of capitakos -5 -200 Cost of capitak %% -400 -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 10%. Do not round intermediate calculations. 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 17%. Do not round intermediate calculations. 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 10%? (Hint: Consider Period 7 as the end of Project B's life.) Do calculations. Round your answers to two decimal places. Project A: % 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 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. 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. -Select