What is each project mirr

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A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
Project A: -300, -387, -193, -100, 600, 600, 850, -180
Project B: -405, 134, 134, 134, 134, 134, 134, 0

a. What is each project's NPV?

b. What is each project's IRR?

c. What is each project's MIRR?

d. From your answers to Parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected?

e. Construct NPV profiles for Projects A and B.

f. Calculate the crossover rate where the two projects' NPVs are equal.

g. What is each project's MIRR at a WACC of 18%

 

Reference no: EM13156609

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