Question: -6 NPV Your division is considering two projects with the following cash flows (in millions): Project A Project B a. What are the projects' NPVs
-6 NPV Your division is considering two projects with the following cash flows (in millions): Project A Project B a. What are the projects' NPVs assuming the WACC is 5\%? 10\%? 15% ? b. What are the projects' IRRs 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% ? (Hint: The crossover rate is 7.81%.)
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