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NPV and TRR Analysis Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: a. Select the correct graph

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NPV and TRR Analysis Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: a. Select the correct graph for NPV profiles for Projects A and B. The correct graph is What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: \%o. c. Calculate the two projects' NPVs, if each project's cost of capital were 10%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: 5 . Project B: 5 Which project, of either, should be selected? should be selected. Calculate the two projects' NPVs, if each project's cost of capital were 18%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A. $ Project. B: $. What would be the proper choice? is the proper choice. is the proper choice. d. What is cach project's Mirg at a cost of caoital of 10% ? (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 MinR at a cost of capital of 18% ? (Hint; Consider Peried 7 as the end of Project a's life.) Do not round intermediate calculations. Round your answers to two decima places. Project A: Project B: e. What is the erpssover rate? Do not round intermediate calculations. Round yeur answer to tho Gecimal pisces. What is its sonificance? I. If the cost of capital is less than the crossover fate, both the NDV and IRR methods lead to the same progect seiectoons: II. The crossaver rate has ne signticance in capital budgeting analysis. III. If the cost of capital is greater than the crossover rate, beth the NNV and 18k methods will lead to the same project selection

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