Question
Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A ($11) $4 $7 $1 Project B
Your division is considering two projects with the following cash flows (in millions):
| 0 | 1 | 2 | 3 | |
| Project A | ($11) | $4 | $7 | $1 |
| Project B | ($20) | $12 | $5 | $9 |
a. What are the projects's IRRs assuming the WACC is 5%?
Project A =
Project B =
b. What are the projects's IRRs assuming the WACC is 10%?
Project A =
Project B =
c. What are the projects's IRRs assuming the WACC is 15%?
Project A =
Project B =
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
