A company has a 12% WACC and is considering two mutually exclusive investments (that cannot...
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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 -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project A Project B -$400 $131 $131 $131 $131 $131 $131 $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. X Project A: $ 240.64 Project B: $ 154.20 b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: 18.10 % Project B: 23.54 % 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. X Project A: 14.59 % X Project B: 16.29 %
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