Start with the partial model in the file Ch12 P25 Build a Model.xlsx. Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Year 0 Expected Net Cash Flows Project A Project B -$365 -$565 -330 180 -220 180 1 2 3 -110 180 4 660 180 5 660 180 6 958 180 7 -220 180 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. X Download spreadsheet Ch12 P25 Build a Model-8b8bed.xlsx a. If each project's cost of capital is 11%, which project should be selected? Round your answers to the nearest cent. NPV (Project A): $ NPV (Project B): $ V should be selected. If the cost of capital is 17%, what project is the proper choice? Round your answers to the nearest cent. NPV (Project A): $ NPV (Project B): $ V should be selected. b. Construct NPV profiles for Projects A and B. Choose the correct graph. A. B. NPV Profiles NPV Profiles $1,200 $1,200 $1,000 $1,000 $800 $800 $600 $ $600 $400 NPV $400 $200 $200 SO SO 0% 5% 10% 15% 20% 30% 0% 5% 10% 15% 20% 25% 30% -S200 -$200 -$400 - Cost of Capital Project A Project B -$400 Cost of Capital Project A Project B C. D NPV Profiles NPV Profiles $1,200 $1,200 $1,000 $1,000 $800 $800 $600 S600+ $400 NPV $400 $200 $200 SO SO 0% 5% 10% 15% 20% 25% 30% 0% 5% 10% 15% 20% 25% 30% -S200 -S200 -$400 Cost of Capital Project A Project B -S400 Cost of Capital Project A Project B c. What is each project's IRR? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answers to two decimal places. IRR (Project A): % IRR (Project B): % d. What is the crossover rate, and what is its significance? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answer for the crossover rate to two decimal places and for the NPV to the nearest cent. The crossover rate is %. The crossover rate represents the cost of capital at which the two projects have the NPV of $ e. What is each project's MIRR at a cost of capital of 11%? At r = 17%? Round your answers to two decimal places. Project A Project B MIRR at r = 11% % % MIRR at r = 17% % % f. What is the regular payback period for these two projects? Round your answers to two decimal places. Regular payback period (Project A): years Regular payback period (Project B): years g. At a cost of capital of 11%, what is the discounted payback period for these two projects? Round your answers to two decimal places. Discounted payback period (Project A): years Discounted payback period (Project B): years h. What is the profitability index for each project if the cost of capital is 11%? Round your answers to three decimal places. Profitability index (Project A): Profitability index (Project B): Start with the partial model in the file Ch12 P25 Build a Model.xlsx. Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Year 0 Expected Net Cash Flows Project A Project B -$365 -$565 -330 180 -220 180 1 2 3 -110 180 4 660 180 5 660 180 6 958 180 7 -220 180 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. X Download spreadsheet Ch12 P25 Build a Model-8b8bed.xlsx a. If each project's cost of capital is 11%, which project should be selected? Round your answers to the nearest cent. NPV (Project A): $ NPV (Project B): $ V should be selected. If the cost of capital is 17%, what project is the proper choice? Round your answers to the nearest cent. NPV (Project A): $ NPV (Project B): $ V should be selected. b. Construct NPV profiles for Projects A and B. Choose the correct graph. A. B. NPV Profiles NPV Profiles $1,200 $1,200 $1,000 $1,000 $800 $800 $600 $ $600 $400 NPV $400 $200 $200 SO SO 0% 5% 10% 15% 20% 30% 0% 5% 10% 15% 20% 25% 30% -S200 -$200 -$400 - Cost of Capital Project A Project B -$400 Cost of Capital Project A Project B C. D NPV Profiles NPV Profiles $1,200 $1,200 $1,000 $1,000 $800 $800 $600 S600+ $400 NPV $400 $200 $200 SO SO 0% 5% 10% 15% 20% 25% 30% 0% 5% 10% 15% 20% 25% 30% -S200 -S200 -$400 Cost of Capital Project A Project B -S400 Cost of Capital Project A Project B c. What is each project's IRR? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answers to two decimal places. IRR (Project A): % IRR (Project B): % d. What is the crossover rate, and what is its significance? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answer for the crossover rate to two decimal places and for the NPV to the nearest cent. The crossover rate is %. The crossover rate represents the cost of capital at which the two projects have the NPV of $ e. What is each project's MIRR at a cost of capital of 11%? At r = 17%? Round your answers to two decimal places. Project A Project B MIRR at r = 11% % % MIRR at r = 17% % % f. What is the regular payback period for these two projects? Round your answers to two decimal places. Regular payback period (Project A): years Regular payback period (Project B): years g. At a cost of capital of 11%, what is the discounted payback period for these two projects? Round your answers to two decimal places. Discounted payback period (Project A): years Discounted payback period (Project B): years h. What is the profitability index for each project if the cost of capital is 11%? Round your answers to three decimal places. Profitability index (Project A): Profitability index (Project B)