Excel Online Structured Activity: Capital budgeting criteria A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

0

1

2

3

4

5

6

7

Project A

-$300

-$387

-$193

-$100

$600

$600

$850

-$180

Project B

-$400

$134

$134

$134

$134

$134

$134

$0

1. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

   Project A: $ ___________

   Project B: $ _____________

2. What is each project's IRR? Round your answer to two decimal places.

   Project A: ___________%

   Project B: ___________%

3. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.

   Project A: __________%

   Project B: __________%

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

   Project A or Project B

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

   Project A or Project B

6. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

   Discount Rate	NPV Project A	NPV Project B
   0%	$	$
   5	$	$
   10	$	$
   12	$	$
   15	$	$
   18.1	$	$
   24.51	$	$

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

   ______________%

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

   Project A: ____________%

   Project B: ____________%