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11-6. NPV: Your division is considering two projects with the following cash flows (in millions) 0___________1__________2__________3 Project A -$25 $5 $10 $17 Project B -$20
11-6. NPV: Your division is considering two projects with the following cash flows (in millions)
0___________1__________2__________3
Project A -$25 $5 $10 $17
Project B -$20 $10 $9 $6
- What is the project's NPVs assuming the WACC is 5%? 10%? 15%
- What are the project's IRRs at each of these WACCs?
- If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What is the WACC was 10% 15% (Hint: The crossover rate is 7.81%)
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
