Question: A company has a 13% WACC and lS considering two mutually exclusive lnvestments (that cannot be repeated) with the following cash flows: 0 1 2

 A company has a 13% WACC and lS considering two mutuallyexclusive lnvestments (that cannot be repeated) with the following cash flows: 0

A company has a 13% WACC and lS considering two mutually exclusive lnvestments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 l l l | | | | | | | | | | Project A $300 $38? $193 $100 $600 $600 $850 $180 Project B $405 $132 $132 $132 $132 $132 $132 so a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round Intermediate calculations. Round youranswers to the nearest cent. Project A: $ 162.48 M Project E: $ 134.67 0 b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: 13.10 M % Project B: 24.29 0 % c. What is each project's MIRR? (Hint: Constder Period 7 as the end of Project B's life.) Do not round Intermediate calculations. Round your answers to two decimal places. Project A: 15.60 '20 % Project B: 17.73 0 % d. From your answers to parts arc, which pr0]ect would be selected? @ [f the WACC was 18%, which project would be selected? 9 e. Construct NPV proles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Discount Rate NPV ProjectA NPV Project B 0% $ 890.00 M $ 7405.00 0 5 540.09 M 119.47 8 10 283.34 M 105.72 8 12 200.41 M 93.55 8 15 92.96 M 82.80 0 18-1 0.09 M 73.27 0 23-33 141.29 0 64.84 0 1'. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. 14.33 0 % 9. What is each project's MIRR at a WACC of18%? Do not round intermediate calculations. Round your answers to two decimal places. Project A: 18.05 M 0/0 Project B: 20.62 '3 %

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