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Capital budgeting criteria A company has a 11% WACC and is considering two mutually exclusive investments that cannot be repeated with the following cash flows

Capital budgeting criteria

A company has a 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

 0 1 2 3 4 5 6 7
 Project A -\$300 -\$387 -\$193 -\$100 \$600 \$600 \$850 -\$180 Project B -\$400 \$131 \$131 \$131 \$131 \$131 \$131 \$0

Construct NPV profiles for Plans A and B. Round your answers to the nearest cent.

 Discount Rate NPV Plan A NPV Plan B 0% \$ \$ 5 \$ \$ 10 \$ \$ 12 \$ \$ 15 \$ \$ 18.1 \$ \$ 23.54 \$ \$

Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places.
%

What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places.
Project A  %
Project B  %

Jun 01 2020 View more View Less