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$132$132$132$132$132$132$0
  1. What is each project's NPV? Round your answer to the nearestcent. Do not round your intermediate calculations.

    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. Do not round your intermediate calculations.

    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 Projects A and B. Round your answersto the nearest cent. Do not round your intermediate calculations.Negative value should be indicated by a minus sign.
    Discount RateNPV Project ANPV Project B
    0%$$
    5
    10
    12
    15
    18.1
    23.86

  6. Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to two decimal places. Do not round yourintermediate calculations.
    %
  7. What is each project's MIRR at a WACC of 18%? Round your answerto two decimal places. Do not round your intermediatecalculations.

    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$132$132$132$132$132$132$0What is each project's NPV? Round your answer to the nearestcent. Do not round your intermediate calculations.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. Do not round your intermediate calculations.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 Projects A and B. Round your answersto the nearest cent. Do not round your intermediate calculations.Negative value should be indicated by a minus sign.Discount RateNPV Project ANPV Project B0%$$510121518.123.86Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to two decimal places. Do not round yourintermediate calculations.%What is each project's MIRR at a WACC of 18%? Round your answerto two decimal places. Do not round your intermediatecalculations.Project A  %Project B  %

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