A company has a 13% 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 | $133 | $133 | $133 | $133 | $133 | $133 | 0 |
A. What is each project's NPV? Round your answer to the nearest cent.
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 of Project B's life.) Round your answer to two decimal places.
Project A: ______%
Project B: ______%
D. 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 | $ | $ |
24.18 | $ | $ |
E. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places.
______%
F. What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places.
Project A: _____%
Project B: _____%
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the follo...
A company has a 13% 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 -$405 $135 $135 $135 $135 $135 $135 $0 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...
A company has a 13% 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 $134 $134 $134 $134 $134 $134 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each...
A company has a 13% 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 --$300-$387-$193-$100$600$600$850-$180 A Project --$405 $131 $131 $131 $131$131$131 $0 в The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet a. What is each project's NPV? Round your answer to the...
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 1 2 3 4 5 6 7 Project A Project B -$300 -$400 -$387 $134 -$193 $134 -$100 $134 $600 $134 $600 $134 $850 $134 -$180 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent....
A company has a 12% 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 -$405 $131 $131 $131 $131 $131 $131 $0
The data has been collected in the Microsoft Excel Online file
below. Open the spreadsheet and perform the required analysis to
answer the questions below. Open spreadsheet What is each...
A company has a 12% 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 $132 $132 $132 $132 $132 $132 $0 What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A:...
3. 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 -$405 $133 $133 $133 $133 $133 $133 $0 What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A $ ________ Project B $ ________ What is...
A company has a 12% 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
The data has been collected in the Microsoft Excel Online file
below. Open the spreadsheet and perform the required analysis to
answer the questions below.
Project A NPV: $ 200.41
Project...
A company has an 11% WACC and is considering two mutually exclusive investments that cannot be repeated) with the following cash flows: Project A Project B -$300 -$405 -$387 $134 -5193 $134 -$100 $134 $600 $134 $600 $134 $850 $134 - $180 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What...
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 -$405 $135 $135 $135 $135 $135 $135 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is each...