Question: -$27 $14 Your division is considering two projects with the following cash flows (in millions): 0 1 2 + Project A $13 $17 $8 Project

-$27 $14 Your division is considering two projects with the following cash flows (in millions): 0 1 2 + Project A $13 $17 $8 Project B -$25 $11 $2 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 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. Project A: $ 7.34 million Project B: $ 0.04 million 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 slon. Do not round Intermediate calculations, Round your answer to two decimal places Project A: $ 36.89 million Project B: $ 23.35 million 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 Project A: $ million Project B: $ 24.45 46.75 million % % b. What are the projects' IRRs assuming the WACC is 5%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: 20.67 Project B: 5.1 % What are the projects' IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: 20.67 Project B: 5.1 What are the projects' IRRs assuming the WACC is 15%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: 20.67 Project B: 5.1 c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.) Project A If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%. Project A If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.) Project A
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