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Project A -280 -205 -390 410 410 650 Project B -495 200 200 200 200 100 Calculate each project's NPV, IRR, and MIRR given the
Project A -280 -205 -390 410 410 650 Project B -495 200 200 200 200 100 Calculate each project's NPV, IRR, and MIRR given the following scenarios: 9% SCENARIO 1: Each project has a weighted average cost of capital of Project A Project B NPV IRR MIRR 15% SCENARIO 1: Each project has a weighted average cost of capital of Project A Project B NPV IRR MIRR Which project would you select in Scenario 1? In Scenario 2? Explain. Identify the crossover rate and crossover amount for these two projects: Time Cash Flow Differential Crossover Rate: Crossover Amount: Calculate the regular payback period for Project A AND calculate the discounted payback period for Project A in Scenario 1: 0 1 2 3 5 PROJECT A Time period Cash flow Cumulative cash flow Regular Payback period = 5 PROJECT A IN SCENARIO 1 Time period Cash flow Discounted cash flow Discounted cumulative cash flow Discounted Payback period =
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