Question: Problem Walk - Through A company has a 1 2 % WACC and is considering two mutually exclusive investments ( that cannot be repeated )
Problem WalkThrough
A company has a WACC and is considering two mutually exclusive investments that cannot be repeated with the following cash flows:
Project A: $
Project B: $
b What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.
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Project B:
Project A:
Project B:
d From your answers to parts ac which project would be selected?
If the WACC was which project would be selected?
f Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.
g What is each project's MIRR at a WACC of Do not round intermediate calculations. Round your answers to two decimal places.
Project A:
Project B:
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