Question: NEED HELP WITH THE WRONG ANSWERS A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the

NEED HELP WITH THE WRONG ANSWERS
NEED HELP WITH THE WRONG ANSWERS A company has a 13% WACC
and is considering two mutually exclusive investments (that cannot be repeated) with

A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 12 3 4 5 6 Project A $300 - $387 $193 -$100 $600 $600 $850 - $180 Project B $405 $135 $135 $135 $135 $135 $135 $0 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: $ 162.47 Project B: $ 134.67 b. What is each project's IRR? Do not round Intermediate calculations. Round your answers to two decimal places Project A: 22.5 % 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: 10.63 % Project B: 10.41 % d. From your answers to parts a-c, which project would be selected? Project A 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 Rate NPV Project B NPV Project A 890 $ 405 540 280.02 182.96 283.34 200.40 150.03 92.96 105.90 18.1 -0.090 g 65.96 24.29 -143.39 f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places. 38.11 % 0.023 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: 10.63 % Project B: 10.41 %

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