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Q Search this course Ch 11: Assignment - The Basics of Capital Budgeting Part II Xc eBook Problem Walk-Through A company has a 12% 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 H 7 Project A -$300 $387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $133 $133 $133 $133 $133 $133 $0 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 : % c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round Intermediate calculations. Round your answers to two decimal places Project A: Project B: d. From your answers to parts ac, which project would be selected? Select- if the WACC was 18%, which project would be selected? d. From your answers to parts ac, which project would be selected? Select If the WACC was 18%, which project would be selected? Select e. Construct NPV profiles for Projects A and B. If an amount is zero, entero. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Discount Rate NPV Project A NPV Protect $ 5 0% 10 12 15 18.1 23.65 Calculate the crossover rate where the two projects NPVs are equal. Do not round Intermediate calculations, Round your answer to two decimal places % a. 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: 90