Question: Check My Work (4 remaining, eBook Problem Walk-Through 4 7 A company has a 12% WACC and is considering two mutually exclusive investments that cannot

 Check My Work (4 remaining, eBook Problem Walk-Through 4 7 A

Check My Work (4 remaining, eBook Problem Walk-Through 4 7 A company has a 12% WACC and is considering two mutually exclusive investments that cannot be repeated) with the following cash flows: 0 1 2 3 5 6 + Project A -5300 -5387 -5193 -5100 5600 5600 5850 -5180 Project B -5405 5135 5135 5135 $135 5135 $135 50 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: $ 500.41 Project B: $ 555.04 b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: 18.10 % Project B: 24.29% 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: : 15.10 % 17.16 g Project B % d. From your answers to parts a-c, which project would be selected? Project AV If the WACC was 18%, which project would be selected? Project BV 13 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 A NPV Project B Discount Rate 096 S S 5 X 10 X 12 X 15 X 18.1 X 24.29 X f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. X % % 9. 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: 18.05 g % Project B: 20.62 %

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