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Problem Walk$-$Through

A company has a $13\%$ WACC and is considering two mutually exclusive investments $($that cannot be repeated$)$ with following cash flows:

a$.$ What is each project's NPV$?$ Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.

Project A: $ $$

Project B: $ $$

b$.$ What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.

Project A: $\%$

Project B: $\%$

c$.$ What is each project's MIRR? $($Hint: Consider Period $7$ as the end of Project B$\text{'}$s life.$)$ Do not round intermediate calculations. Round your answers to two decimal places.

Project A: $\%$

Project B: $\%$

d$.$ From your answers to parts a$-$c$,$ which project would be selected?

$-$Select$-$

If the WACC was $18\%,$ which project would be selected?

$$

Select$-1$

e$.$ Project $A$

Project B

JPV profiles for Projects A and B$.$ If an amount is zero, enter $0.$ Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations.

$q,$

e$.$ Construct NPV profiles for Projects A and B$.$ If an amount is zero, enter O$.$ Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.

$\backslash$table$[[$Discount Rate,,NPV Project B$],[0\%,,],[5,,],[10,,],[12,,],[15,,],[18\mathrm{.}1,,],[24\mathrm{.}83,,]]$

f$.$ Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

g$.$ What is each project's MIRR at a WACC of $18\%?$ Do not round intermediate calculations. Round your answers to two decimal places.

Project A: $\%$

Project B: $\%$