need help with parts e, f, and g please!! ...

50.1K

Verified Solution

Question

Finance

need help with parts e, f, and g please!!
image
image
ity: Capital budgeting criteria Search Excel Online Structured Activity: Capital budgeting criteria A company has a 11% 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 Project B $300 -$405 -$387 $133 -$193 $133 -$100 $133 $600 $133 $600 $133 $850 $133 $180 $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 Open spreadsheet a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations Project A: $ 240.64 Project B: $ 157.66 b. What is each project's IRR? Round your answer to two decimal places Project A: 18.10 % Project B: 23.65 % 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 found your intennediate calculations. Project A: 14.59 % tivity: Capital budgeting criteria e. 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 09 NPV Project A $ 890 NPV Project $ 410.00 XX 5 $ 540.00 $ 285.22 10 $ 283.34 $ 187.96 12 $ 200.41 155.04 $ $ 15 5 92.96 110.91 x x 18.1 $ -0.09 $ 70.97 x 23.65 $ - 153.70 $ 0.01 Calculate the crossover rate where the two projects NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations 14.33 % 9. 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 18.05 % Project 1 20.62 9

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students