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11: End-of-Chapter Problems - The Basics of Capital Budgeting Your division is considering two projects with the following cash flows (in millions): 0 2 3

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11: End-of-Chapter Problems - The Basics of Capital Budgeting Your division is considering two projects with the following cash flows (in millions): 0 2 3 1 Project A -$17 $8 $8 $3 Project B -$26 $13 $10 $9 a. What are the projects' NPVs assuming the WACC is 5%7 Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millons. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign Project A million Project B $ million What are the projects' NPVs assuming the WACC IS 10%? Round your answer to two decimal places. De not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project AS million Project B $ milion What are the projects' NPVs assuming the WACC is 15? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in mons. For example, answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign Project A Project B $ milion b. What are the projects' issuming the WACC S 37 Round your answer to two decimal places. Do not round your intermediate calculations Project A Project What are the projects IRRs assuming the WACC W 1037 Round your answer to two decimal ploom De not round your intermediate calculations Project Project What are the projects IRRs assuming the WACC is 1587 Round your answer to two decimal places. Do not round your wtermediate calculations Project A Projects c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 70.199) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? The crossover rate is 20.19%) If the WACC was 15% and A and were mutually exclusive, which project would you choose?(ent: The Crossover rate is 20.19%)

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