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
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 | -$320 | -$360 |
1 | -387 | 134 |
2 | -193 | 134 |
3 | -100 | 134 |
4 | 600 | 134 |
5 | 600 | 134 |
6 | 850 | 134 |
7 | -180 | 134 |
What is each project's IRR? Round your answers to two decimal places. Project A % Project B %
Calculate the two projects' NPVs, if you were told that each project's cost of capital was 11%. Round your answers to the nearest cent. Project A $ Project B $ Calculate the two projects' NPVs, if the cost of capital was 16%. Round your answers to the nearest cent. Project A $ Project B $
What is each project's MIRR at a cost of capital of 11%? (Hint: Note that B is a 6-year project.) 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: Note that B is a 6-year project.) Round your answer to two decimal places. Project A % Project B %
What is the crossover rate? Round your answer to two decimal places. %
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