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WACC= 12% 0 1 2 3 4 6 7 -5387 $850 Project A Project B -$180 -5300 -$400 -$193 $134 + $600 $134 -$100 $134
WACC= 12%
0 1 2 3 4 6 7 -5387 $850 Project A Project B -$180 -5300 -$400 -$193 $134 + $600 $134 -$100 $134 $600 $134 $134 $134 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % c. What is each project's MIRR? (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: % d. From your answers to parts a-c, which project would be selected? -SAIAC1- If the WACC was 18%, which project would be selected? -Select- e. Construct NPV profiles for Projects A and B. If an amount is zero, enter O. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. NPV Project A NPV Project B Discount Rate 0% $ S 5 10 12 15 18.1 24.51
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