Duvall Inc. uses only equity capital and has two equally sized divisions. Division As cost of capital is 10%. Division Bs cost of capital is 14%. The WACC is 12%. All of Division As projects are equally risky, as are all of Division Bs projects. However, the projects of Division A are less risky than those of Division B. Which of the following would the company accept?

Harrys Inc. is considering a project that has the following cash flow and WACC data. What is the projects NPV and IRR?

WACC 14.75%

Year 0 1 2 3 4 5

Cash flows -$1,000 $300 $300 $300 $300

		$10.58 13.8%
		$13.02 17.0%
		$11.63 15.2%
		$9.07 11.9%