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1. Problem 10-07 (NPV) eBook NPV Vour division is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate
1. Problem 10-07 (NPV) eBook NPV Vour division is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the following net cash flows: Year Project A Project B $5,000,000 $20,000,000 1 10,000,000 2 10,000,000 3 20,000,000 6,000,000 a. What are the two projects net present values, assuming the cost of capital is 5%? Do not round intermediate calculations. Round your answers to the nearest dollar Project A: $ Project B: What are the two projects' net present values, assuming the cost of capital is 10 %? Do not round intermediate calculations. Round your answers to the nearest dollar Project A: $ Project B: $ What are the two projects' net present values, assuming the cost of capital is 159% ? Do not round intermediate calculations. Round your answers to the nearest dollar. Project A: Project B: $ b. What are the two projects' IRRS at these same costs of capital? Do not round intermediate calculations. Round your answers to two decimal places. Project A Project B
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