XYZ Corporation is deciding if they should repair the old machine or replace it with a new machine. The two alternatives have an estimated life of four years. XYZ Corp. has estimated following cash flows for these two alternatives. Please answer the questions a$,$ b$,$ c$,$ and d with all calculations and full justification.

Cost of Capital is $10\%$ and the benchmark for PB is $3$ years

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YEAR Cash Flow $($A$)$ Cash Flow $($B$)$

$0-$$$54,000-$$$23,000$

$112,70011,600$

$223,20011,200$

$327,60012,500$

$446,5006,000$

a$.$ Find NPV$,$ IRR, Profitability Index, MIRR, and Payback of Project A

b$.$ Find NPV$,$ IRR, Profitability Index, MIRR, and Payback of Project B

c$.$ Find Crossover rate between projects A and B

d$.$ Give your complete decision to accept and reject. Explain the reasons in detail for your decision.

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