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 Projects A and B. If an amount...


D, E, F, G, need to be solved


d. From your answers to parts a-c, which project would be selected?<br>-Select-<br>If the WACC was 18%, which project would be selected?<br>-Select-<br>e. Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not<br>round intermediate calculations. Round your answers to the nearest cent.<br>Discount Rate<br>NPV Project A<br>NPV Project B<br>0%<br>5<br>10<br>12<br>15<br>18.1<br>23.01<br>f. Calculate the crossover rate where the two projects' NPVS are equal. Do not round intermediate calculations. Round your answer to two decimal<br>places.<br>%<br>g. What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.<br>Project A:<br>Project B:<br>%<br>

Extracted text: 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 Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Discount Rate NPV Project A NPV Project B 0% 5 10 12 15 18.1 23.01 f. Calculate the crossover rate where the two projects' NPVS are equal. Do not round intermediate calculations. Round your answer to two decimal places. % g. What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: %
Ch 11: Assignment - The Basics of Capital Budgeting Part II<br>PTODIEM Vwalk-Tirougn<br>A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:<br>1<br>3<br>4<br>6.<br>7<br>Project A<br>-$300<br>-$387<br>-$193<br>-$100<br>$600<br>$600<br>$850<br>-$180<br>Project B<br>-$405<br>$131<br>$131<br>$131<br>$131<br>$131<br>$131<br>$0<br>a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your<br>answers to the nearest cent.<br>Project A: $<br>Project B: $<br>b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.<br>Project A:<br>%<br>Project B:<br>c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers<br>to two decimal places.<br>Project A:<br>%<br>Project B:<br>%<br>d. From your answers to parts a-c, which project would be selected?<br>-Select-<br>

Extracted text: Ch 11: Assignment - The Basics of Capital Budgeting Part II PTODIEM Vwalk-Tirougn A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 1 3 4 6. 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $131 $131 $131 $131 $131 $131 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers 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.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % d. From your answers to parts a-c, which project would be selected? -Select-
Jun 06, 2022
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