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yes! A company has a 12% WACC and is considering two mutually exclusive investments that cannot be repeated) with the following cash flows: 0 1

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yes!
A company has a 12% WACC and is considering two mutually exclusive investments that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 - $387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $133 $133 $133 $133 $133 $133 $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. Open spreadsheet a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ 200.41 Project : $ b. What is each project's IRR? Round your answer to two decimal places. Project A: 18.10 % Project 3: c. What is each project's MIRR? (Hint: Consider Perlod 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: 15.10 Project B: d. From your answers to parts -c, which project would be selected? Project A If the WACC was 18%, which project would be selected? Project B 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 0% NPV Project $ 890 NPV Project $ 5 $ 540.09 $ 10 $ 283.34 $ 12 $ 200.41 $ 15 $ 92.96 $ 0% $ 890 5 $ 540.09 $ 10 $ 283.34 $ 12 $ 200.41 $ 15 $ 92.96 $ 18.1 $ -0.09 23.65 $ $ 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 9. 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: 18.05 96 Project B: Capital budgeting criteria WACC 12.00% 1 a $100 2 Project 3 $100 4 $000 5 S600 6 $450 7 -$180 -S405 $139 $133 $133 $130 $133 $133 8 Project NPV Calculations Formu LUNA NPV Pro Con Project MRR Con She C 1 F G AMR, besed 100 7 -$180 5000 DOS $850 ANA Po Pouto 1 Profyour autou N PV PV 0005 MR 0 2 4 9 $120 7. 50 SOS $133 seudo 3000 50N 61 PM F WR 0 000 WC 70 WACC 71 NPVA 72 NPV, 73 Acompt 18.00 $2.68 $80.18 INIA NPV NPV, $80.18 Discount Rates NPV 15 NPV Profiles 76 Discount Rats 7 78 79 NPV. 52.68 $80.18 0% 5.00% 10.00% 12.00% 15.00% 18.10% 23.65% 51 0% 5.00% 10.00% 12.00% 15.00% 18.10% 23.85% ANA ANA ANJA ANIA NNIA ANIA ANIA ONA ANA ANA NA NA 15 16 NPV Profiles D E F G H 3 Con of Crossover 1 2 $100 600 5 5800 5 $850 7 -$180 PA 12 Project 9 $133 $133 $130 $133 $133 $0 INA SNA SA INA INA NA SNA 1 2 3 Crossover RRR 4 5 PM on a WACC on 6 WACO NA 18.00 MRR 9 MAR ANIA

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