Question: 4. NPV Your division is considering two projects with the following cash flows (in millions): Period 0 1 2 3 Project Project A B -25

4. NPV Your division is considering two projects with the following

4. NPV Your division is considering two projects with the following cash flows (in millions): Period 0 1 2 3 Project Project A B -25 -20 5 10 10 9 17 6 a. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? b. What are the projects' IRR at each of these WACCs? 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%

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