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This question has 3 parts. Picture 1 is part A. Picture 2 is part B and C. In the 2nd picture for part C, the
This question has 3 parts. Picture 1 is part A. Picture 2 is part B and C. In the 2nd picture for part C, the SELECT options for all 3 sections are:
4. Problem 11.06 (NPV) book Problem Walk Through Your division is considering two projects with the following cash flows (in millions): 1 2 Project $21 514 59 Project -535 $20 $0 515 a What are the projects' NPVs assuming the WACC IS 5Enter 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 AS million Project B: 5 million What are the projects NPVs assuming the WACC s 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 AS million Project : 5 mon 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 found intermediate calculations. Round your answer to two decimal places Project AS million Project Bs million b. What are the projects' IRRs assuming the WACC is 5%? Do not found 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 : c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 8.76%.) Select If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 8.76%.) Select If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 8.76%.) -Select 1) project A
2) project B
3) Neither A or B
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