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

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 -$17 - $26 1 $8 $13 million million % 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: $ Project B: $ 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: $ Project B: $ 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 million million 2 million $8 $10 3 $3 $9 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:
 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

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%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!