Video Excel Online Structured Activity: Capital budgeting criteria A company has a 11% WACC and is considering two mutually exclusive investments that cannot be repeated) cash flows: Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B $405 $134 $134 $134 $134 $134 $134 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is each project's NPV7 Round your answer to the nearest cent. Do not round your intermediate calculations Project A: $ 240.64 Project B: $ 161.89 calculations b. What is each project's IRR7 Round your answer to two decimal places Project A: 17.97 % Project B: 24 % MindTap - Cangage Leaming MINDTAP Q Search this course ivity: Capital budgeting criteria What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: Project B: d. From your answers to parts a-c, which project would be selected? Project A D If the WACC was 18%, which project would be selected? Project B Bg e. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate NPV Project A NPV Project B 18.1 23.97 f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. g. What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A: Project B: Check My Work Reset Problem Capital budgeting criteria WACG Project NPV Calculations NEVA Project Man Cakulations P R Calculations Alternatively, MAR, can be calculated as 26 Project 28 prof Year Outlow > Parow 30 PV Year Bouw PVYO REBBIEBER Sumut WYR MR Sum of our PUT 6) FV 64 WRRR Pet Acceptance WACC WACC VA Formulas $0.00 60 N 61 PV 62 PMT 63 Fy 64 VYRMIRR $0.00 11.000 66 Project Acceptance 67 WACC 68 Accept 69 70 WACC 71 NPVA 72 NPVA Accept 18.00% $2.66 75 NPV Profiles: Discount Rates ount Rates NPV WNA 0% 5.00% 1000% 12.00% 15.00% 18.10% 5.00% 10.00% UNA 12.00% UNA 1500 18.10% 2397 23.97% #N/A #N/A Sheet1 Saved to Cangace NPV Profiles S:88188983338 108 Project $134 $134 $134 Calestate Project Det Crossover R RR 115 Project MR Calaton a WACC tas 116 WACC Video Excel Online Structured Activity: Capital budgeting criteria A company has a 11% WACC and is considering two mutually exclusive investments that cannot be repeated) cash flows: Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B $405 $134 $134 $134 $134 $134 $134 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is each project's NPV7 Round your answer to the nearest cent. Do not round your intermediate calculations Project A: $ 240.64 Project B: $ 161.89 calculations b. What is each project's IRR7 Round your answer to two decimal places Project A: 17.97 % Project B: 24 % MindTap - Cangage Leaming MINDTAP Q Search this course ivity: Capital budgeting criteria What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: Project B: d. From your answers to parts a-c, which project would be selected? Project A D If the WACC was 18%, which project would be selected? Project B Bg e. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate NPV Project A NPV Project B 18.1 23.97 f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. g. What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A: Project B: Check My Work Reset Problem Capital budgeting criteria WACG Project NPV Calculations NEVA Project Man Cakulations P R Calculations Alternatively, MAR, can be calculated as 26 Project 28 prof Year Outlow > Parow 30 PV Year Bouw PVYO REBBIEBER Sumut WYR MR Sum of our PUT 6) FV 64 WRRR Pet Acceptance WACC WACC VA Formulas $0.00 60 N 61 PV 62 PMT 63 Fy 64 VYRMIRR $0.00 11.000 66 Project Acceptance 67 WACC 68 Accept 69 70 WACC 71 NPVA 72 NPVA Accept 18.00% $2.66 75 NPV Profiles: Discount Rates ount Rates NPV WNA 0% 5.00% 1000% 12.00% 15.00% 18.10% 5.00% 10.00% UNA 12.00% UNA 1500 18.10% 2397 23.97% #N/A #N/A Sheet1 Saved to Cangace NPV Profiles S:88188983338 108 Project $134 $134 $134 Calestate Project Det Crossover R RR 115 Project MR Calaton a WACC tas 116 WACC
