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please show excel inputs 3 Basics of Capital Budgeting 4 5 BA220-40 Corporation is considering two mutually exclusive investments and projects' expected net cash flows
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3 Basics of Capital Budgeting 4 5 BA220-40 Corporation is considering two mutually exclusive investments and projects' expected net cash flows are as follows: 4 6 9% 15% 7 Project A Project B 8 8 -280 -495 9 -205 200 10 -390 200 11 410 200 12 410 200 13 650 100 14 15 Calculate each project's NPV, IRR, and MIRR given the following scenarios: 16 17 SCENARIO 1: Each project has a weighted average cost of capital of 18 Project A Project B 19 NPV 20 IRR 21 MIRR 22 23 SCENARIO 1: Each project has a weighted average cost of capital of 24 Project A Project B 25 NPV 26 IRR 27 MIRR 28 29 Which project would you select in Scenario 1? In Scenario 2? Explain. 30 31 32 33 34 Identify the crossover rate and crossover amount for these two projects: 35 36 Time Cash Flow Differential 37 Crossover Rate: 38 Crossover Amount: 39 40 41 42 43 44 Calculate the regular payback period for Project A AND calculate the discounted payback period for Project A in Scenario 1: 45Step by Step Solution
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