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Your division is considering two projects with the following cash flows (in millions): Project A Project B Negative value should be indicated by a minus
Your division is considering two projects with the following cash flows (in millions): Project A Project B Negative value should be indicated by a minus sign. Project A$ million Project B $ million Negative value should be indicated by a minus sign. Project A \$ million Project B $ million Negative value should be indicated by a minus sign. Project A $ million Project B \$ million b. What are the projects' IRRs assuming the WACC is 5% ? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B % What are the projects' IRRs assuming the WACC is 10% ? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B % What are the projects' IRRs assuming the WACC is 15% ? Round your answer to two decimal places. Do not round your intermediate calculations. 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 3.86%.) ] If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 3.86%. If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 3.86%.)
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