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2 11-6 NPV Your division is considering two projects with the following cash flows (in millions): 0 3 H Project A -$25 $5 $10 $17

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2 11-6 NPV Your division is considering two projects with the following cash flows (in millions): 0 3 H Project A -$25 $5 $10 $17 Project B - $20 $10 $9 $6 + 7 a What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? b. What are the projects' IRRs at each of these WACCS? 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%.)

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