# A company has a 12% WACC and is considering two

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A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following net cash flows:

a. What is each projectâ€™s NPV?

b. What is each projectâ€™s IRR?

c. What is each projectâ€™s MIRR? (Hint: Consider Period 7 as the end of Project Bâ€™s life.)

d. From your answers to Parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected?

e. Construct NPV profiles for Projects A and B.

f. What is each projectâ€™s MIRR at a WACC of18%?

- 5
- 25
- 3
- 8
- 34

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