Question: You are considering the following three projects. A & B are mutually exclusive while Cis independent. Following are their expected cash flows year project A

 You are considering the following three projects. A & B are

You are considering the following three projects. A & B are mutually exclusive while Cis independent. Following are their expected cash flows year project A Project B Project C -60,000.00 0 0 -40,000.00 -20,000.00 40,000.00 40,000.00 20,000.00 35,000.00 30,000.00 2,000.00 82,000.00 60,000.00 20,000.00 4 10,000.00 -40,000.00 Assuming no capitol rationing a required rate of return (cost of capital) of 12% for all three projects. 1) Calculate NPV for each project. 2) Calculate IRR(s) for each project. 3) Calculate PI for each project 4) Using cost of capital, as a financing and reinvestment rate, calculate MIRR for each project. 5) If A&B profiles cross, calculate the exact crossover point between project A & B. 6) Which of the three projects, if any, should be accepted and why

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