Expected Cash flows for Two mutually exclusive investments
Year Project A Project B
0 -$280 -$430
1 -387 134
2 -193 134
3 -100 134
4 600 134
5 600 134
6 850 134
7 -180 134
A. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.
B. Calculate the two projects' NPVs, if you were told that each project's cost of capital was 10%. Do not round intermediate calculations. Round your answers to the nearest cent.
C. Calculate the two projects' NPVs, if the cost of capital was 18%. Do not round intermediate calculations. Round your answers to the nearest cent.
D. What is each project's MIRR at a cost of capital of 10%? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.
E. What is each project's MIRR at a cost of capital of 18%? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answer to two decimal places.
F. What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places.