Solution-Assignment on npv and irr analysis

Assignment on npv and irr analysis

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Reference no: EM133069799

NPV and IRR Analysis

Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows:

	EXPECTED NET CASH FLOWS
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

1. What is each project's MIRR at a cost of capital of 10%? (Hint: Note that B is a 6-year project.) Round your answers to two decimal places.

2. What is each project's MIRR at a cost of capital of 18%? (Hint: Note that B is a 6-year project.) Round your answer to two decimal places.

3. What is the crossover rate? Round your answer to two decimal places.

Reference no: EM133069799

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Assignment on npv and irr analysis

Reference no: EM133069799

Reference no: EM133069799

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