Question: 6. Problem 11.06 (NPV) eBook Problem Walk-Through Your division is considering two projects with the following cash flows (in millions): Project A Project B 0


Your division is considering two projects with the following cash flows (in millions): Project Project 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: \$ million Project B: mition 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 sign. Do not round intermediate calculations. Round your answer to two decimal places. project A : s million Project B: $ million What are the projects' NPVs assuming the WACC is 15% ? Enter your answer in millionsy 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: s milition b. What are the projects' IRRs assuming the WACC is $% ? Do not round intermediate calculations, Round your answer to two decimal places. Project A: Project B: 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: % Project 8: What are the projects' IRRs assuming the WACC is 10% ? Do not round intermediate calculations. Round your answer to two decimal places. Project A: Profect B: What are the projects' IRRs assuming the WACC is 15% ? Do not round intermediate calculations. Round your answer to two decimal places. Project A: Project B: c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 20.19\%.) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 20.19%. ) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 20.19%
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