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Your division is considering two projects with the following cash flows (in millions): Project A: 5 million Project A: $ million Project B: $ million
Your division is considering two projects with the following cash flows (in millions): Project A: 5 million Project A: $ million Project B: $ million 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. ProjectA:ProjectB:%% What are the projects' IRRs assuming the WACC is 10\%? Do not round intermediate calculations. Round your answer to two decimal places. ProjectA:ProjectB:%% 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 10.72%.) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72\%.) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.)
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