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B12 A с D E F G G H I K A Capital budgeting criteria WACC 12.00% 0 -$300 1 $387 2 $193 $ 3 S100) 4 S600 5 S600 6 $850 Project A 7 $180 Project B -$405 $131 $131 $131 S131 $131 $131 $0 Formulas 11 Project NPV Calculations: 12 NPVA #N/A 14 NPV, #N/A -NMTUONDO999 ARTES 16 Project IRR Calculations: 17 IRRA #N/A 19 IRR, #N/A Project MIRR Calculations: 22 MIRRA #N/A #/ 24 Alternatively, MIRRA can be calculated as: 1 0 $300 2 $193 3 -$100 4 S600 5 $600 6 $850 7 $180 26 Project A $387 28 PV of Year 1 Outflow 29 PV of Year 2 Outflow 30 PV of Year 3 Outflow PV of Year 7 Outflow Formulas #N/A #N/A #NA #N/A Formula: UNIA
B12 A B с D E F G Н H I j K * #A #N/A #N/A #NIA Formulas 7 $0.00 D 0 $0.00 Lu 34 35 36 Sum of Outflow PVs 37 38 N 39 PV 40 PMT 41 FV 42 WYR = MIRRA 43 44 MIRRA 45 46 Alternatively, MIRRcan be calculated as: 47 48 Project B 49 #N/A #NIA w叶形的口的$H Rp 形形扫把的ma3B887883n&B 1 7 0 -$405 $131 2 $131 3 $ $131 4 $131 $ 5 $131 6 $131 $0 Formula #NIA #NIA #NIA UNIA #N/A #NIA 51 52 53 54 55 56 57 58 Sum of Outflows PVs 59 60 N 61 PV 62 PMT 63 FV 64 I/YR = MIRR 65 #N/A A #NIA Formulas 7 $0.00 0 $0.00 #N/A
I S53.15 S2.66 NPVA Discount Rates AN 1 TI 23. NS NPV Profiles 12.00% 18.00% $2.66 $53.19 15.00% 29.046 12 23 Project Acceptance 75 NPV Profiles: Discount Rates NPV 20 $1 00 80 D 10 $1 $0. $0. so 孤孤印础的%n见四叶乃心思四wn配B叫四驱印昭四%n%9叫卵%。
A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 3 4 5 6 7 2 + -$193 $131 Project A Project B -$300 -$405 -$387 $131 -$100 $131 $600 $131 $600 $131 $850 $131 -$180 SO The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis answer the questions below. X Open spreadsheet a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ Project B: $ b. What is each project's IRR? Round your answer to two decimal places. Project A: % Project B: c. What is each project's MIRR? (Hint: Consider Period 7 as the end Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: % Project B: % d. From your answers to parts a-c, which project would be selected? If the WACC was 18%, which project would be selected?