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Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: d. What is each project's MIRR at a cost

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Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: d. What is each project's MIRR at a cost of capital of 10%6 ? (Hints Conslder Period 7 as the end of Project B's life.) Do not round intermediate caleulations Round your answers to two decimal ploces. What is each project's MIRR at a cost of capitai of 17% ? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calsilations. Round your answers to two decimal piaces. 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 greater than the crossover rate, both the NPV and IRR methods will lead to the same project seiection. II. If the cost of capital is less than the crossover rate, both the NPV and IRR methods lead to the same project selections III. The crossover rate has no significance in capital budgeting analysis

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