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Please show work! You may use Excel as long as you show formulas 11-6 NPV Your division is considering two projects with the following cash
Please show work!
You may use Excel as long as you show formulas
11-6 NPV Your division is considering two projects with the following cash flows (in millions): A timeline shows values for Projects A and B over 3 years. The data from the timeline, presented in the format, project, 0,1,2,3, are as follows. A, negative $25,$5,$10,$17. B, negative $20,$10,$9,$6. a. What are the projects' NPVs assuming the WACC is 5% ? 10% ? 15% ? b. What are the projects' IRRs at each of these WACCs? c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10% ? 15\%? (Hint: The crossover rate is 7.81%.) Step by Step Solution
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