Cummings products companys cost of capital is 12 and the


Cummings Products Company's cost of capital is 12% and the company is considering two mutually exclusive projects. In the past, it usually takes 5 years for the company to recoup its investment from a good project. The projects' expected cash flows are as follows: Year Project A Project B 0 ($300) ($405) 1 (387) 134 2 (193) 134 3 (100) 134 4 600 134 5 600 134 6 850 134 7 (180) 0 Project A's payback period is Project B's payback period is Project A's NPV is Project B's NPV is Project A's MIRR is Project B's MIRR is Based on MIRR, which project(s) should we choose? (Simply type A or B.) Based on payback period, which project(s) should we choose? (Simply type A or B.) Based on NPV, which project(s) should we choose? (Simply type A or B.) If you are the decision maker in this company, which project(s) would you choose? (Simply type A or B.)

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Financial Management: Cummings products companys cost of capital is 12 and the
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