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Your division is considering two projects with the following cash flows (in millions): Project A Project B should be entered as 10.55 . Negative value
Your division is considering two projects with the following cash flows (in millions): Project A Project B should be entered as 10.55 . Negative value should be indicated by a minus sign. Project A million Project B $ million should be entered as 10.55 . Negative value should be indicated by a minus sign. Project A million Project B $ million should be entered as 10.55 . 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. ProjectAProjectB%% ProjectAProjectB%% 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. c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.)
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