Construct npv profiles for projects a and b

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Reference no: EM132065047

Dalton Products is considering two mutually exclusing investments whose expected net cash flows are as follows:

	Expected Net Cash	Flows
Year	Project A	Project B
0	-$500	-$700
1	-565	220
2	-200	220
3	-140	220
4	1,200	220
5	830	220
6	950	220
7	-330	220

a. Construct NPV profiles for Projects A and B

b. What is each project's IRR?

c. If each project's cost of capital were 10%, which project, if either, should be selected?

d. What is each project's MIRR at the cost of capital of 10%? At 18%?

Reference no: EM132065047

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