A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:a. What is each project?s NPV?b. What is each project?s IRR?c. What is each project?s MIRR? (Hint: Consider Period 7 as the end of Project B?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. Calculate the crossover rate where the two projects?NPVs are equal.g. What is each project?s MIRR at a WACC of 18%?

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2 3 4 5 6 + -$300 -$387 -$193 -$100 $134 + Project A Project B $600 $134 $600 $134 $850 -$180 $134 $0 -$405 $134 $134