Assignment 11: Chapter 11 Problems eBook Problem Walk-Through A company has an 115 WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows 0 2 4 5 6 7 Project A -$300 -$387 -5193 -$100 5600 $600 $8.50 -$180 Projects -$405 5134 5134 $134 $134 $134 $134 30 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 AS Project : two decimal places b. What Is each project's TAR? Do not round Intermediate calculations. Round your answers to two decimal places Project A Project : What is each project's MIRR (Hint: Consider Period as the end of Project 'te.) Do not round intermediate calculations. Hound your answers Project A Project d. From your answers to parts, which project would be selected? Sc If the WACC was 18%, which project would be selected? $ 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. Discount Bate NPV Project A NPV Project 0% $ 5 10 12 15 18.1 23.97 1. Calculate the crossover rate where the two projects NPVs are equal. Do not round intermediate calculations, Round your answer to two decimal places. % 9. What is each project's MIRR at a WACC of 1847 Do not round Intermediate calculations. Round your answers to two decimal places Project A Project : Grade it Now Save & Continue Continue without saving