A company has a 13% WACC and is considering two mutually exclusive Investments that cannot...
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A company has a 13% WACC and is considering two mutually exclusive Investments that cannot be repeated) with the following cash flows 0 6 7 Project A $300 5387 -$193 -$100 $600 $600 $850 -$180 Project -5405 5135 5135 $135 $135 $135 $135 $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 AS Projects 1. What is each projects IRR? Do not round intermediate calculations. Round your answers to two decimal places Project A Project c. What is each project MERRY CHin Consider Period as the end of Project B) Do not found intermediate calculations, Round your answer to two deomal places Project A Project : 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 anche initiated a minus sian. Do not round intermediate calculation. Round Project e Construct NPV profiles for Projects A and B. If an amount is zero, entero. Negative values, any, should be indicated by a minus sign. Do not found intermediate calculations, Round your answers to the nearest cent. NPV Project. A NPV Project Discount Rate 0% $ 5 10 12 15 18.1 f. Calculate the crossover rate where the two projects PVs are equal. Do not round intermediate calculations, Round your answer to the decimal places 9. What is each project's MERR at a WACC of 10%? Do not round Intermediate calculations, Round your answers to two decimal places Project Project
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