A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be...

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Finance

A company has a 13% WACC and is considering two mutuallyexclusive investments (that cannot be repeated) with the followingcash flows:

01234567
Project A-$300-$387-$193-$100$600$600$850-$180
Project B-$400$133$133$133$133$133$133$0
  1. What is each project's NPV? Round your answer to the nearestcent.
    Project A $   
    Project B $  

  2. What is each project's IRR? Round your answer to two decimalplaces.
    Project A  %
    Project B  %

  3. What is each project's MIRR? (Hint: Consider Period 7as the end of Project B's life.) Round your answer to two decimalplaces.
    Project A  %
    Project B  %

  4. From your answers to parts a-c, which project would beselected?
    -Select-Project AProject BItem 7

    If the WACC was 18%, which project would be selected?
    -Select-Project AProject BItem 8

  5. Construct NPV profiles for Plans A and B. Round your answers tothe nearest cent.
    Discount RateNPV Plan ANPV Plan B
    0%$  $  
    5$  $  
    10$  $  
    12$  $  
    15$  $  
    18.1$  $  
    24.18$  $  

  6. Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to two decimal places.
    %

  7. What is each project's MIRR at a WACC of 18%? Round your answerto two decimal places.
    Project A  %
    Project B  %

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A company has a 13% WACC and is considering two mutuallyexclusive investments (that cannot be repeated) with the followingcash flows:01234567Project A-$300-$387-$193-$100$600$600$850-$180Project B-$400$133$133$133$133$133$133$0What is each project's NPV? Round your answer to the nearestcent.Project A $   Project B $  What is each project's IRR? Round your answer to two decimalplaces.Project A  %Project B  %What is each project's MIRR? (Hint: Consider Period 7as the end of Project B's life.) Round your answer to two decimalplaces.Project A  %Project B  %From your answers to parts a-c, which project would beselected?-Select-Project AProject BItem 7If the WACC was 18%, which project would be selected?-Select-Project AProject BItem 8Construct NPV profiles for Plans A and B. Round your answers tothe nearest cent.Discount RateNPV Plan ANPV Plan B0%$  $  5$  $  10$  $  12$  $  15$  $  18.1$  $  24.18$  $  Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to two decimal places.%What is each project's MIRR at a WACC of 18%? Round your answerto two decimal places.Project A  %Project B  %

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