Question: What are the projects NPVs assuming the WACC is 4%? 11.5%? 14%? (cash flow in millions) b. What are the projects IRRs at each of

What are the projects NPVs assuming the WACC is 4%? 11.5%? 14%? What are the projects NPVs assuming the WACC is 4%? 11.5%? 14%?(cash flow in millions)

b. What are the projects IRRs at each of these WACCs?

c. If the WACC was 4% and A and B were mutually exclusive, which project would you choose? What if the WACC was 11.5%? 14%?

3 1 + $5 $10 2 + $10 $9 Project A Project B -$25 - $20 $17 $6

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