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NPV & IRR Two projects have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$105,000 -$150,000 1
NPV & IRR Two projects have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$105,000 -$150,000 1 $30,000 $30,000 2 $45,000 $30,000 3 $30,000 $40,000 4 $15,000 $50,000 5 $44,500 $87,000 Both projects have a salvage value at the end of year 5 of $20,000 Calculate the NPVs and IRRS of each project, if the WACC is 6% and if it is 11%. Then answer the questions that follow. You may find it useful to enter your answers in the following table: NPV IRR Project A Project B Project A Project B @6% WACC @ 6% WACC @11% WACC @11% WACC creenshot 2024-04-10... NPV & IRR Refer to the scenario above. i Q Q The project(s) you select may vary depending on the WACC and whether th projects are independent or mutually exclusive. Which statement is INCORRECT? If the projects are independent and the WACC is 11.0%, both projects A and B ar acceptable. If the projects are independent, Project A would be acceptable if the WACC is 17%, but Project B would not. If a project's NPV is negative, the project cannot be accepted. If the projects are mutually exclusive and the WACC is 11.0%, only project B is acceptable. If the projects are mutually exclusive and the WACC is 6.0%, only project B is acceptable.
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