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It can be presented however, I just need the answers it is asking for. H 8 Accept #NA 9 'O WACC 1 NPV. 2 NPV
It can be presented however, I just need the answers it is asking for.
H 8 Accept #NA 9 'O WACC "1 NPV. 2 NPV 18.00% $2.66 $68.68 A 3 Accept #N/A NPV. Discount Rates NPV $68.68 NPV NPV $2.66 $2.66 $68.68 -4 5 NPV Profiles: *6 Discount Rates *7 8 9 10 1 2 3 4 35 86 7 18 $1.20 9 0 $1.00 1 2 $0.00 3 0% 5.00% 10.00% 12.00% 15.00% 18.10% 24.51% 0% 5.00% 10.00% 12.00% 15.00% 18.10% 24.51% #NIA #N/A #NIA #N/A #N/A #NIA #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A NPV Profiles $0.60 NMD 83 $0.40 7 18 09 $0.20 10.00% 12.00% 15.00 18.10X 24.5IN 0 $300 $387 2 $193 $100 $600 $600 $850 $180 01 $0.00 OX 5.00% 02 03 04 Calculation of Crossover Rate: 05 06 Project A 07 D8 Project B 09 10 Project Delta 11 12 13 Crossover Rate = IRR 14 15 Project MIRR Calculations ar WACC = 18% $400 $134 $134 $134 $134 $134 $134 $0 #NA #NA #N/A ANA #N/A #N/A #NA #N/A #N/A 16 WACC 18.00% #NA #NA 17 18 MIRR 19 MIRR 20 21 22 23 24 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 -$193 Project A Project B - $300 -$400 -$387 $134 -$100 $134 $600 $134 $600 $134 $850 $134 -$180 $0 $134 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ Project B: $ b. What is each project's IRR? Round your answer 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's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: % Project B: % d. From your answers to parts a-c, 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. Discount Rate NPV Project A NPV Project B 0% $ $ 5 $ $ 10 $ $ 12 $ $ 15 $ $ 18.1 $ $ 24.51 $ $ f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % g. 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: %Step by Step Solution
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