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Explain the relative advantages and disadvantages of NPV VS IRR Your division is considering two projects. Its WACC is 12%, and the projects' after tax

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Explain the relative advantages and disadvantages of NPV VS IRR

Your division is considering two projects. Its WACC is 12%, and the projects' after tax cash flows (in millions of dollars) would be as follows: Time 0 1 2 3 Espected net cash flowes Project A Project B (540) (540) SIO S25 SIS SIS S20 $13 S25 s11 You need to find the NPV, IRR, MARR, DiscountedPayback and NPV profile in this question a Calculate the projects' NPVs, IRR, MIKRs, and discounted paybacks. 12% WACC E NPV NPV IL IRR IRR Reinvestment rate is 8% MIRR MIRR 0 1 10.00 3 20.00 4 25.00 15.00 Project A Time periat Chow (40.00) PV cash flow Disc cummil cshtm: Pastock, 0 4 Project B Time period Cash flow (40.00) PV cash flow Disc cum ca flow 1 25.00 2 15.00 3 13.00 11.00 Payback: Payback, h Find each projects's NPV profiles for the two projects. Identify each projects' RRs and approximate cross-over point. Explain the significance of the cross-over points. For instance, is it better to switch from ce project to another, just because the WACC changed? Project A Project B 0.00% Explain: 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% 26,00% 28.0096

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