Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:

Expected Net Cash Flows

Year Project A Project B

0 -$435 -$635

1 -450 185

2 -300 185

3 -150 185

4 900 185

5 900 185

6 912 185

7 -300 185

Do not round intermediate calculations.

a. If each project's cost of capital is 9%, which project should be selected? Round your answers to the nearest cent. If the cost of capital is 14%, what project is the proper choice? Round your answers to the nearest cent.

b. Construct NPV profiles for Projects A and B. Choose the correct graph.

c. What is each project's IRR? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answers to two decimal places.

d. What is the crossover rate, and what is its significance? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answer for the crossover rate to two decimal places and for the NPV to the nearest cent.

e. What is each project's MIRR at a cost of capital of 9%? At r = 14%? Round your answers to two decimal places.

f. What is the regular payback period for these two projects? Round your answers to two decimal places.

g. At a cost of capital of 9%, what is the discounted payback period for these two projects? Round your answers to two decimal places.

h. What is the profitability index for each project if the cost of capital is 9%? Round your answers to three decimal places.