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The options for part C are project A, Project B or neither. Please answer ALL parts! double check all answers. Your division is considering two
The options for part C are project A, Project B or neither. Please answer ALL parts! double check all answers.
Your division is considering two projects with the following cash flows (in millions): a. 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 Project B: \$ million 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: \$ million Project B: \$ 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 Project B: $ million 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: % 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% ? Do not round intermediate calculations. Round your answer to two decimal places. Project A: % Project B: % c. If the WACC was 5\% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 5.9\%.) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 5.9%. ) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 5.9%.)Step by Step Solution
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