A company has a 11% WACC and is considering two mutually exclusive investments (that cannot...
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Finance
A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
A. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Project A: $_____
Project B: $_____
B. What is each project's IRR? Round your answer to two decimal places.
Project A: _____%
Project B: _____%
C. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations.
Project A:_____%
Project B: _____%
D. From your answers to parts a-c, which project would be selected? ______
If the WACC was 18%, which project would be selected? _____
1 2 3 4 5 6 7 -$300 - $387 - $ 193 - $100 $600 Project A Project B $600 $132 $850 $132 -$180 $0 - $400 $132 $132 $132 $132
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