Exclusive investments whose expected net cash flows

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Reference no: EM131958493

Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: Expected Net Cash Flows Year Project A Project B 0 -400 -650 1 -528 210 2 -219 210 3 -150 210 4 1,100 210 5 820 210 6 990 210 7 -325 210 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? If the cost of capital were 17%, what would be the proper choice? d. What is each project's MIRR at the cost of capital of 10%? At 17%? (Hint: Consider Period 7 as the end of Project B's life). e. What is the crossover rate, and what is its significance? I am trying to figure out the Future Value for Project A at 10% and 17% in order to solve for the MIRR on my calculator.

Reference no: EM131958493

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