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1. Your division is considering two projects with the following net cash flows (in millions): 0 1 3 2 + $10 $9 Project A Project

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1. Your division is considering two projects with the following net cash flows (in millions): 0 1 3 2 + $10 $9 Project A Project B -$25 -$20 $5 $10 $17 $6 a. b. What are the projects NPVs assuming the WACC is 5%? 10%? 15%? What are the projects' IRRs? If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%? 15%? c

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