Question: Please, i need to decimal points in each answer. Thank you. A company has a 13% WACC and is considering two mutually exclusive investments (that

 Please, i need to decimal points in each answer. Thank you.

Please, i need to decimal points in each answer.

Thank you.

A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 2 4 7 Project A$300 $387 $193 $100 $600 $600 $850$180 Project B $400 $131 $131 $131 $131 $131 $131 $0 a. What is each project's NPV? Round your answer to the nearest cent. Project A $ 162.48 Project B 123.68 b. What is each project's IRR? Round your answer to two decimal places | 90 Project A 18.10 Project B 23.54 % c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places Project A 15.60 Project B 17.43 | % 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? Project B e. Construct NPV profiles for Plans A and B. Round your answers to the nearest cent NPV Plan A $890 scount Rate PV Plan B 096 $ 400 10 12 15 18.1 23.54

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!