Question: Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: a. Select the correct graph for NPV profiles for



Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: a. Select the correct graph for NPV profiles for Projects A and B. b. What is each project's IRRR Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project 8: c. Calculate the two projects' NPVs, if each project's cost of capital were 10\%. Do not round intermediate calculations. Round your answers to the nearest cent, Project A: 3 Project B: 5 Which project if elther, should be selected? should be selected. Calculate the two projects' NPVs, if each project's cost of capital wete 18\%. Do not round intermediate calculations, Round your answers to the nearest cent. Project A: $ Project 8:5 What would be the proper choice? is the proper choice. d. What is each project's MIRR at a cost of capital of 10% ? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermedsate calculations. Round your answers to two decimal places. Project A: Project B: What is each project's MiRR at a cost of capital of 1857 (Hint: Considec period 7 as the end of Project B's life.) Da not round intermediate calculations. Round your answers to two decimal places. Project A: Project 8: e. What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places. What is its significance? I. If the cost of capital is preater than the crossover rate, both the NPV and IRR methods will lead to the same project selection. 11. If the cost of capital is less than the crossover rate, both the NpV and IRR methods lead to the same project selections. 111. The crossover rate has no sionificance in capital budgeting analysis
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