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

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Finance

A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

0 1 2 3 4 5 6 7
Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180
Project B -$400 $135 $135 $135 $135 $135 $135 $0

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below

What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project A: $ __

Project B: $ __

What is each project's IRR? Round your answer to two decimal places.

Project A: __

Project B: __

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: __

From your answers to parts a-c, which project would be selected? __

If the WACC was 18%, which project would be selected? __

Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

Discount Rate NPV Project A NPV Project B
0% $ fill in the blank 10 $ fill in the blank 11
5 $ fill in the blank 12 $ fill in the blank 13
10 $ fill in the blank 14 $ fill in the blank 15
12 $ fill in the blank 16 $ fill in the blank 17
15 $ fill in the blank 18 $ fill in the blank 19
18.1 $ fill in the blank 20 $ fill in the blank 21
24.83 $ fill in the blank 22 $ fill in the blank 23

Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. __

What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

Project A: __

Project B: __

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