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C. has options Project A, Project B or Neither Your division is considering two projects with the following cash flows (in millions): 0 1 2
C. has options Project A, Project B or Neither
Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 H 7 + Project A Project B -$35 -515 $4 $8 $14 $5 $20 $4 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 $ 7.71 million Project B $ 0.04 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 $ 4.88 million Project B $ -1,68 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 $ 2.42 million Project B $ -3.19 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 20.67 % Project B 5.11 % 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 1.66%.) -Select- If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.) Select . If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.) -SelectStep by Step Solution
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