Question: all parts are for same question eBook Problem Walk-Through ELE A company has a 12% WACC and is considering two mutually exclusive investments that cannot

 all parts are for same question eBook Problem Walk-Through ELE A

company has a 12% WACC and is considering two mutually exclusive investments

all parts are for same question

eBook Problem Walk-Through ELE A company has a 12% WACC and is considering two mutually exclusive investments that cannot be repeated with the following cash flows: 2. 3 5 0 1 .4 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 $180 Project B -$400 $134 $134 $134 $134 $134 $134 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round youranswers to two decimal places. Project A: % Project B: % c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. % Project A: % Project B: d. From your answers to parts a-c, which project would be selected? Select- If the WACC was 18%, which project would be selected? Select- e. Construct NPV profiles 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. d. From your answers to parts a-C, which project would be selected? -Select If the WACC was 18%, which project would be selected? -Select- v e. Construct NPV profiles 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. NPV Project B Discount Rate NPV Project A 0% $ $ 5 10 12 15 18.1 24.51 f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. % a g. What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places. % Project A: % Project B: Activate Windows

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