Use the following data to answer the next 4 questions: Ben Ramsay is evaluating two mutually exclusive projects (expected cash flows shown below). The firm's cost of capital is 12 percent. Year Project A Project B 0 (480) (480) 1 230 110 2 230 240 3 230 380 NPV? IRR? Calculate the NPVs and IRRs for Projects A and B. Which of the following is most CORRECT? a. Project A's NPV is $72,42, and Project B's NPV is $80.02. b. Project A's NPV is $78.07, and Project B's NPV is $77.14. c. Project A's IRR is 21.98 percent, and Project B's IRR is 20.42 percent. d. Project A's IRR is 20.40 percent, and Project B's IRR is 19.71 percent. e. Project A's IRR is 19.96 percent, and Project B's IRR is 19,81 percent. Draw the projects' NPV profiles in the space provided below. Which of the following statements is most CORRECT? (Remember, these projects are mutually exclusive.) a. The sum of A's cash flows is greater than the sum of B's cash flows. b. Project B is less sensitive to a change in the cost of capital. c. The projects' NPV profiles have to cross between 12% and 19.81%. d. The projects' NPV profiles have to cross between 13% and 20.60%. e. Project A's profile intercepts the vertical axis at $72.42. Which of the following conclusions is most FALSE concerning Projects A and B? (Remember, these projects are mutually exclusive.) a. Because the projects have equal size, MIRR will choose the same project that NPV will choose. b. Without even calculating the MIRRs, you know that the MIRR for B is greater than the MIRR for A. c. Project A should be chosen since its IRR is better and it has a shorter payback. d. If the cost of capital were 16.05%, both projects would have the same NPV. e. Since NPV and IRR disagree as to which project should be chosen, you know that there is a crossover in the positive quadrant of the graph. Calculate the MIRR for the following project. The cost of capital is 9 percent. O 1 2 3 4 5 6 | (600) 500 (100) 200 600 (60) 200 20.12 percent 19.36 percent 18.93 percent 18.24 percent 17.89 percent