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11-6 NPV Your division is considering two projects with the following cash flows in millions): 2 3 1 0 + $17 Project A -$25 $5
11-6 NPV Your division is considering two projects with the following cash flows in millions): 2 3 1 0 + $17 Project A -$25 $5 $10 Project B - $20 $10 $9 $6 a. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? b. What are the projects' IRRs at each of these WACCs? c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%? 15%? (Hint: The crossover rate is 7.81%.) firm with a 14% WACC is evaluating two projects for
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