A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:

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1. What is each project's MIRR? (Round you answer to two decimal places)

Project A:

Project B:

2. Construct NPV profiles for Projects A and B.

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

Project A:

Project B: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $132 $132 $132 $132 $132 $132 $0 Discount Rate NPV Project A NPV Project B 0% 10 12 $ 15 18.1 23.33

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