Question
NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$16 $7 $9 $10 Project
NPV
Your division is considering two projects with the following cash flows (in millions):
0 | 1 | 2 | 3 |
Project A | -$16 | $7 | $9 | $10 |
Project B | -$26 | $14 | $20 | $11 |
What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million
What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million
What are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million
What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places. Project A % Project B %
What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places. Project A % Project B %
What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places. Project A % Project B %
If the WACC were 5% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 48.57%.) -Select-Project AProject BNeither A, nor BItem 13
If the WACC were 10% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 48.57%.) -Select-Project AProject BNeither A, nor BItem 14
If the WACC were 15% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 48.57%.) -Select-Project AProject BNeither A, nor B
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