11-6 NPV Your division is considering two projects with the following cash flows (in millions): 0 2 3 1 + Project A Project B - $25 - $20 $5 $10 $10 $9 $17 $6 C. What are the projects' NPVs assuming the WACC is 5% 10% 15%? b. What are the projects' IRRs at each of these WACCs? 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%.) 11-7 CAPITAL BUDGETING CRITERIA A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: 2 0 3 4 5 + + + 1 Project M Project N - $30,000 - $90,000 $10,000 $28,000 $10,000 $28,000 $10,000 $28,000 $10,000 $28,000 $10,000 $28,000 Inn hack and discounted payback for each project