Question: 11-6 NPV Your division is considering two projects with the following cash flows (in millions) O 2 3 Project A -$25 $5 $10 $17 Project


11-6 NPV Your division is considering two projects with the following cash flows (in millions) O 2 3 Project A -$25 $5 $10 $17 Project B -$20 $10 $9 $6 a. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? b. What are the projects' IRRs at each of the WASSs? c. If the WACC was 5% and A and B were mutually exclusive, would you choose? What if WACC was 10%? 15%? (Hint: The crossover rate is 7/81%.)
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