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4. Problem 11.06 Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: NPV Profiles NPV Your division is

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4. Problem 11.06 Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: NPV Profiles NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 $12 $22 Project A Project B -$31 -$19 $7 $13 $6 $5 a. What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do 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 A million Project B $ million $ What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Do 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 A $ million Project B $ million 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 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 A $ million Project B $ million b. What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B % % What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B % c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) If the WACC was 10% and A and -Select- were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) If the WACC was 15% and A and -Select -Select- Project A Project B Neither A, nor B Grade it Now Save & Continue

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