NPV and IRR Analysis Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: Year Expected Net Cash Flows Project A Project B -$430 -$680 -528 -219 0 H N 210 N N -150 210 n N 1,100 210 N N 820 990 -325 N 210 a. Select the correct graph for NPV profiles for Projects A and B. ++++ VPVC$) I 14001 1200 1000 VPVC$) I 1400 1200 1000+ VPVS) 1400 1200 1000 VPVC$) I 14001 12001 1000+ 8007 800 Project A Project B Project A Project // 6007 6001 400 400 ++++++++++++++ 4001 4001 Project B Project B 2007 Project All 2001 + * +Hittttttttt 205 0 205 0 20 25 30 cost of capek 945 -4001 cost of capek 945 -2001 cod -400 | on cost of capital 945 -4001 Project B ++++ +++++ +++++++++++++++++ Cost of Jako5 20 25 30 -2001 cos -400 | The correct graph is -Select- V . b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: olo JELL DE Project B: c. Calculate the two projects' NPVs, if each project's cost of capital was 11%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ Which project, if either, should be selected? -Select- should be selected. Calculate the two projects' NPVs, if each project's cost of capital was 16%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ What would be the proper choice? -Select- is the proper choice. d. What is each project's MIRR at a cost of capital of 11%? (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: What is each project's MIRR at a cost of capital of 16%? (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: e. What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places. What is its significance? I. The crossover rate has no significance in capital budgeting analysis. II. If the cost of capital is greater than the crossover rate, both the NPV and IRR methods will lead to the same project selection. III. If the cost of capital is less than the crossover rate, both the NPV and IRR methods lead to the same project selections. -Select- 7