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Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate NPV Project A NPV Project B 0% $   $   5 $   $   10 $   $   12 $   $   15 $   $   18.1 $   $   23.01 $   $   The exel sheet is down below for the entirre question! Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate NPV Project A NPV Project B 0% $   $   5 $   $   10 $   $   12 $   $   15 $   $   18.1 $   $   23.01 $   $   The exel sheet is down below for the entirre question! Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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  1. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign.

    Discount Rate NPV Project A NPV Project B
    0% $   $  
    5 $   $  
    10 $   $  
    12 $   $  
    15 $   $  
    18.1 $   $  
    23.01 $   $  

The exel sheet is down below for the entirre question!

  1. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations.

    %

  2. What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations.

    Project A: %

 

 

Project Acceptance:                    
WACC 13.00%                  
Accept   #N/A                
                     
WACC 18.00%                  
NPVA $2.66                  
NPVB $53.19                  
Accept   #N/A                
                     
NPV Profiles:                    
Discount Rates NPVA NPVB     Discount Rates NPVA NPVB      
  $2.66 $53.19       $2.66 $53.19      
0%         0% #N/A #N/A      
5.00%         5.00% #N/A #N/A      
10.00%         10.00% #N/A #N/A      
12.00%         12.00% #N/A #N/A      
15.00%         15.00% #N/A #N/A      
18.10%         18.10% #N/A #N/A      
23.01%         23.01% #N/A #N/A      
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
Calculation of Crossover Rate:                    
    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  
                     
Project Delta                    
    #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A  
                     
Crossover Rate = IRRΔ   #N/A              
                     
Project MIRR Calculations at WACC = 18%                    
WACC 18.00%                  
                     
MIRRA   #N/A            
MIRRB   #N/A            
                     
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