The answers of a-d already existed still need to find the other questions Question A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 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? project A :$200.41 project B :$155.04 b. What is each project's IRR? project A :18.10% project B :24.83% c. What is each project's MIRR? project A :15.1% project B :17.4% d. From your answers to Parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected? Already answered e. Construct NPV profiles for Projects A and B discount rate NPV PLAN B. NPV PLAN B Discount Rate NPV Project A NPV Project B 0% $ $ 5 10 12 15 18.1 24.83 Formula: f. Calculate the crossover rate where the two projects' NPVs are equal. Formula: g. What is each project's MIRR at a WACC of 18% Formula:

The answers of a-d already existed still need to find the other questions Question A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 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? project A :$200.41 project B :$155.04 b. What is each project's IRR? project A :18.10% project B :24.83% c. What is each project's MIRR? project A :15.1% project B :17.4% d. From your answers to Parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected? Already answered e. Construct NPV profiles for Projects A and B discount rate NPV PLAN B. NPV PLAN B Discount Rate NPV Project A NPV Project B 0% $ $ 5 10 12 15 18.1 24.83 Formula: f. Calculate the crossover rate where the two projects' NPVs are equal. Formula: g. What is each project's MIRR at a WACC of 18% Formula:

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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