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6. Problem 11.06 (NPV) Your division is considering two projects with the following cash flows (in millions): 0123 Project A-S27813 $1758 Project B-S25 S14 S1

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6. Problem 11.06 (NPV) Your division is considering two projects with the following cash flows (in millions): 0123 Project A-S27813 $1758 Project B-S25 S14 S1 S2 a. What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions For example, an answer of S10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a mines sign. Do not round intermediate calculations. Round your answer to two decimal places. Project AS million Project B: S million What are the projects' NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of S10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places Project AS million Project B: S million What are the projects NPVs assuming the WACC is 15%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not found intermediate calculations. Round your answer to two decimal places Project AS million Project B: S million 6. What are the projects IRRs assuming the WACC is 5%? Do not round intermediate calculations, Round your answer to two decimal places Project A Project B What are the projects IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: Project B: What are the projects IRRs assuming the WACC is 15%? Do not round intermediate calculations. Round your answer to two decimal places. 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 90.37%) If the WACC was 10% and A and B were mutually exclusive, which project would you choose! (Hint: The crossover rate is 90.37%) If the WACC was 15% and A and B were mutually exclusive, which project would you choose (Hint: The crossover rate is 90.37%)

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