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Please complete all parts of this problem. h 11-CBI (Homework from EOC Problems) E eBook Problem Walk Through Your division is considering two projects with
Please complete all parts of this problem.
h 11-CBI (Homework from EOC Problems) E eBook Problem Walk Through Your division is considering two projects with the following cash flows (in millions): 0 Project A Project B $27 -$25 $13 $14 Project B: $ million 2 6. What are the projects' NPVS assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places Project A $ million million $17 $11 Project B $ What are the projects' NPVS assuming the WACC is 10%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55 Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A $1 million Project 6: $ million What are the projects' NPVs assuming the WACC is 15%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places Project A $ million $8 $2 X Battery status: 93% remai b. What are the projects' IRRS assuming the WACC is 5%? Do not round Intermediate calculations. Round your answer to two decimal places. Project A 96 Project B: What are the projects' IRRS assuming the WACC is 10%? Do not round Intermediate calculations. Round your answer to two decimal places, Project A: Project B: What are the projects' IRRS assuming the WACC is 15% 7 Do not round Intermediate calculations. Round your answer to two decimal places. Project A % % Select % Project B: % If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.) Select If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%) Step by Step Solution
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