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Your firm is trying to determine which project it should invest in. The projects are mutually exclusive. The cost of capital is 12%. Expected Cash

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Your firm is trying to determine which project it should invest in. The projects are mutually exclusive. The cost of capital is 12%. Expected Cash Flows Expected Cash Flows Year Project A Project B -34,000 -31,500 -27,000 14,500 2 11,500 15,000 20,500 16,500 30,500 18,000 35,000 19,000 6 38,000 19,500 7 40,000 20,000 a) Calculate each project's IRR and the crossover rate of the two projects. b) Calculate each project's MIRR at a reinvestment rate of 10%. c) Calculate each project's regular payback period. d) Calculate each project's discounted payback period with a cost of capital of 12%. e) Calculate each project's profitability index at a cost of capital of 12%. f) Calculate each project's NPV. g) Construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%

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