A 1 Sample Capital Budgeting Question 2 3 Your company has asked you to assess two projects that are mutually exclusive. 4. The cash flows are given below. Given that the company's WACC is 10%, calculate the 5 following and submit/link your answers to the chart on the right 7 1. What is the NPV of each project and based on that, what project would you choose? 8 2. What is the IRR of each project and based on that, what project would you choose? 9 3. Fill in the blanks regarding our decision of which project to invest in based on the NPV 10 and varying the cost of capital. 11 NOTE: Always round to 2 decimal places 12 Project A Project B 14 0$ (60,000.0) $ (58,000.0) 1 $ 20,000.0 $ 45,000.0 2 $ 20,000.0 $ 10,000.0 17 3 $ 10,000.0 $ 10,000.0 18 4 $ 30,000.0 $ 5,000.0 13 15 19 MN WACC 10% Project A Project B Choose NPV IRR If the Cost of Capital is less than if the Cost of Capital is greater than then we should invest in and less than then we should invest in