Question: This one is a beast!! I dont know how to approach this one at allll!!! Please HELP ME :( A company has a 13% WACC
This one is a beast!! I dont know how to approach this one at allll!!! Please HELP ME :(
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 2 4 6 Project A $300 $387 $193 $100 $600 $600 $850 $180 Project B $400 $135 $135 $135 $135 $135 $135 $0 a. What is each project's NPV? Round your answer to the nearest cent. Project A $ Project B b. What is each project's IRR? Round your answer to two decimal places Project A Project B 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 Project B d. From your answers to parts a-c, which project would be selected? Select- If the WACC was 18%, which project would be selected? Select- e. Construct NPV profiles for Plans A and B. Round your answers to the nearest cent. iscount Rate NPV Plan A NPV Plan B 0% 10 12 15 18.1
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