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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: 11 4 5 7 Project A Project B 0 2 -$300 -$387 -$193 -$100 $600 $600 $850 -$405 $131 $131 $131 $131 $131 $131 Select 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 A: $ Project B: $1 b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. % 3 Project A: Project B 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. Project A: Project B: d. From your answers to parts a-c, which project would be selected? % % 6 % -$180 $0 If the WACC was 18%, which project would be selected? -Select- StudyHa If the WACC was 18%, which project would be selected? -Select- v e. Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. NPV Project A NPV Project B Discount Bate 0% 5 10 12 15 $ 18.1 23.01 f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. % g. What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: 1%

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