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You are considering the following mutually exclusive projects: if the firm required return (WACC) is 10%: What is the NPV of project A? What is

You are considering the following mutually exclusive projects:

if the firm required return (WACC) is 10%: What is the NPV of project A? What is the IRR of project A? What is the NPV of project B? What is the IRR of project B? Which one you must select?

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15) You are considering the following mutually exclusive projects: (15pts) 1 4 5 0 - -$400 -$600 2 + $55 $300 3 + $55 $50 Project A Project B $55 $300 $225 $50 $225 $49 if the firm required return (WACC) is 10%: a. What is the NPV of project A? b. What is the IRR of project A? c. What is the NPV of project B? d. What is the IRR of project B? e. Which one you must select? a. b. C. d. e

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