Problem 11-6 NPV

Your division is considering two projects with the following cash flows (in millions):

0

1

2

3

Project A	-$17	$8	$8	$3
Project B	-$26	$13	$10	$9

What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ million Project B $ million

What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ million Project B $ million

What are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ million Project B $ million

What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B %

What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B %

What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations. 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 20.19%.) -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 20.19%.) -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 20.19%.) -Select-Project AProject BNeither A, nor BItem 15