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Your division is considering two projects with the following cash flows (in millions): Project A Project B a. What are the projects' NPVs assuming the
Your division is considering two projects with the following cash flows (in millions): Project A Project B a. What are the projects' NPVs assuming the WACC is 5\%? Enter your answer in millions. For example, an answer of $10, 550,000 should be entered as Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. \begin{tabular}{lr|l} Project A: & $ & million \\ Project B: $ & million \end{tabular} What are the projects' NPVs assuming the WACC is 10% ? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. \begin{tabular}{l|l} Project A: $ & million \\ Project B: $ & million \end{tabular} What are the projects' NPVs assuming the WACC is 15\%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. \begin{tabular}{l|l} Project A: $ & million \\ Project B: $ & million \end{tabular} b. What are the projects' IRRs assuming the WACC is 5% ? Do not round intermediate calculations. Round your answer to two decimal places. \begin{tabular}{l|l} Project A: & % \\ Project B: & % \end{tabular} What are the projects' IRRs assuming the WACC is 10% ? Do not round intermediate calculations. Round your answer to two decimal places. Project A: % Project B: \% 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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