Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: Expected Net Cash Flows Project A -$350 Year 0 1 2 3 4 5 6 7 -528 -219 -150 1,100 820 990 -325 Project B -$620 210 210 210 210 210 210 210 a. Select the correct graph for NPV profiles for Projects A and B. A VPM(D) 1400- 1200- 1000- 800- 600- 400- 200+ -200 -400 VPV(5) 1400+ 1200- 1000- 800- 600- 400- 200+ -5 -200 -400 The correct graph is -Select- o Project A Project B Cost of capa5 20 Project A Project B Cost of capa 20 25 30 30 VPM(D) 1400- 1200 1000+ 800- 600- 400 200- -5 -200 -400 VPVD 1400- 1200 1000- 800 600- 400- 200 -200 -4001 Project A Project B Cost of capital Cost of B D 15 20 Project A 20 Project B 25 30 b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % 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: $ Project B: $ Which project, if either, should be selected? -Select- should be selected. Calculate the two projects' NPVS, if each project's cost of capital were 18%. Do not round intermediate calculations, Round your answers to the nearest cent. Project A: $ Project B: $ What would be the proper choice? -Select- 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 intermediate calculations, Round your answers to two decimal places. Project A: % Project 8: What is each project's MIRR at a cost of capital of 18% ? (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: 9 e. What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places. What is its significance? 1. If the cost of capital is greater than the crossover rate, both the NPV and IRR methods will lead to the same project selection. II. If the cost of capital is less than the crossover rate, both the NPV and IRR methods lead to the same project selections. III. The crossover rate has no significance in capital budgeting analysis. -Select- O