• Cummings Products 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

  1. a. Construct NPV profiles for Projects A and B.
  2. b. WhatiseachprojectsIRR?Answer.
  3. c. If each projects cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?Answer..
  4. d. What is each projects MIRR at the cost of capital of 10%? At 17%? (Hint:Consider Period 7 as the end of Project Bs life.)Answer
  5. What is the crossover rate, and what is its significance?Answer.

I know how to do A and B. Its C-E I am having difficulties. I use a graphing calculator. I have found other solutions but it does not specify how it came with the answer. I am looking to understand for my test more than just having the right answer. Thank you in advance.