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NPV and TRR Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: Year EXPECTED NET CASH FLOWS

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NPV and TRR 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 D 1 210 2. -528 -219 -150 210 210 4 1,100 210 5 210 820 990 6 210 7 -325 210 a. Construct NPV profiles for Projects A and B. Select the correct graph. A VPMS) 14001 VPMS) 1400 1200 1000 VPM) 1400 1200 1200 800 Project B 1000 000 600 400 200 1000 800 000 Prict A 600 400+ Project A 400 2005 Page B 200 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

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