Excel Online Structured Activity: Capital budgeting criteria A company has a 129 WACC and is considering two mutually exclusive investments that cannot be repeated with the following cash flows: Project A Project B $193 $300 $405 $307 $133 -$100 5600 600 $133 $133 $133 The data has been collected in the Microsoft Excel Online file below. Open the spreads open spreadsheet 3. What is each project's NPV? Round your answer to the nearest cent. Do Project AS Project : $ b. What is cach project's IRR? Round your answer to two decimal places Project B: What is each project's MIRR? (Hint: Consider Period as the end of Project O's ) Round your answer to two decimal places. Do not round your intermediate calculations Project A: Project: d. From your answers to parts -c, which project would be selected? If the WACC was 18%, which project would be selected? Project : $ b. What is each project's R7 Round your answer to two decimal places Project At Project ! c. What is each project's MIRR(Hint: Consider Period 7 as the end of Project Bs ) Round your answer to two decimal places. Do not round your intermediate calculations Project A: Project B: d. From your answers to parts ac, which project would be selected? If the WACC was 18%, which project would be selected? e. 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 Duscount Bate NPY Project A Ney Project 15 23.65 I calculate the crossover rate where the two projects' NPVs are equal Round your answer to two decimal places. Do not round your intermediate calculations 9. What is each project's MIRR at a WACC of 1897 Round your answer to two decimal places. Do not round your intermediate calculations Project A! Project : Capital budgeting enteria Pro Project NPV Calculanon 16 Project IRR Calculations: 11RRA 21 Project MR Calculations: 24 Alternatively, MIRR, can be calculated as 26 Proda 5300 $387 5183 $100 Formulas 28 PV of Year 1 Outlo 29 PV of Year 2 Outlow 10 PV of Year Outlow 31 PV of Year 7 Outfiw 11 Foto Alternatively, can be calculated Sum of Outflow Formulas 60 N 61 PV 62 PMT 64 VYRMIRE 66 Project Ad 67 WACO 68 Accept 12.00 10 WACC 71 NPVA 72 NPV, 73 Accept $60.18 75 NPV Profiles 76 Discount Ral Discount Rates 04 12.00 15.00% 18.10% 5.00 1000 12.00% 15.00% 18.10 23 65% NPV Profiles 104 Calculation of Crossover Rate 100 Pro $500 $987 $123 5 100 $600 Stos $130 111 Crossover Rate FR 101 104 Calculation of Crossover Rate: 106 Project 107 108 Project 109 110 Project Delta S406 $133 113 Crossover Rate 114 115 Project MIRR Calculations at WACC = 18% 116 WACC 117 118 MRR 119 MIRR
