A company has an 11% WACC and is considering two mutually
exclusive investments (that cannot be repeated) with the following
cash flows:
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: $
What is each project's IRR? Do not round intermediate
calculations. Round your answers to two decimal places.
Project A: %
Project B: %
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: %
From your answers to parts a-c, which project would be
selected?
-Select-Project AProject BItem 7
If the WACC was 18%, which project would be selected?
-Select-Project AProject BItem 8
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.
Calculate the crossover rate where the two projects' NPVs are
equal. Do not round intermediate calculations. Round your answer to
two decimal places.
%
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: %
A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the follo
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