Question: You have been asked to analyze two mutually exclusive projects. Expected Cash Flows Expected Cash Flows Year Project A Project B 0 -191,000 -48,500 1

You have been asked to analyze two mutually exclusive projects. Expected Cash Flows Expected Cash Flows Year Project A Project B 0 -191,000 -48,500 1 -101,000 14,500 2 -24,500 16,000 3 41,500 18,550 4 100,500 22,000 5 132,500 23,500 6 177,000 25,500 7 212,000 28,000 8 8 275,000 35,000 a) Construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%. b) Calculate each project's IRR c) Calculate the crossover rate of the two projects. d) Calculate each project's MIRR at a cost of capital of 14% and reinvestment rate of 10%. e) Calculate each project's regular payback period. f) Calculate each project's discounted payback period with a cost of capital of 14%. g Calculate each project's profitability index at a cost of capital of 14%. h) Calculate each project's NPV at a required rate of return of 14%. i) Calculate each project's NPV at a required rate of return of 28%
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