Question: 11-6. NPV Your division is considering two projects with the following cash flows (in millions): 1 2 3 0 H - $25 -$20 $5 $10

11-6. NPV Your division is considering two projects with the following

11-6. NPV Your division is considering two projects with the following cash flows (in millions): 1 2 3 0 H - $25 -$20 $5 $10 Project A Project B $17 $6 $10 $9 a. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? Answer b. What are the projects' IRRs at each of these WACCs? Answer C. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%? 15%? (Hint: The crossover rate is 7.81%.)

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