Management wants you to decide between two mutually exclusive projects. Their expected cash flows are given below:

Expected Net Cash Flows
Time	Project ABC	Project XYZ
0	-1000	-750
1	-400	275
2	-250	250
3	-150	200
4	500	200
5	500	200
6	650	200
7	650	200
8	1200	200
9	-100	0

1. Which project should be chosen if the WACC for each project is 6%? Justify your answer.

2. What if the WACC for each project was 8%? Justify your answer.

3. What is the IRR and MIRR for each project? For the MIRR, assume a WACC of 12%

4. What is the Crossover rate?

5. What is the payback period on ABC?