Question
NPV: Your division is considering tow projects with the fllowing cash flows (in millions): 0 1 2 3 Proj A -$25 $5 $10 $17 Proj
NPV: Your division is considering tow projects with the fllowing cash flows (in millions):
0 1 2 3
Proj A -$25 $5 $10 $17
Proj B -$20 $10 $9 $6
a. What are the projects NPVs assuming the WACC is 5%? 10%? 15%?
b. What are the projects IRRR at each of these WACCs?
c. IF the WACC was 5% and A and B were mutually exclisive, which project would you choose? what if the WACC was 10%? 15%?
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
