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NPV and IRR Analysis Cummings Products Company is considering two mutually exclusive investments whose expected net...

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 -$300 -$405
1 -387 134
2 -193 134
3 -100 134
4 600 134
5 600 134
6 850 134
7 -180 134

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.

Project A  %

Project B  %

What is each project's MIRR at a cost of capital of 17%? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answer to two decimal places.

Project A  %

Project B  %

What is the crossover rate? Do not round intermediate calculations. Round your answer to two decimal places.
%

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