Question: 6. Problem 11.06 (NPV) Your division is considering two projects with the following cash flows (in millions): 0123 Project A-S27813 $1758 Project B-S25 S14 S1

 6. Problem 11.06 (NPV) Your division is considering two projects with

6. Problem 11.06 (NPV) Your division is considering two projects with the following cash flows (in millions): 0123 Project A-S27813 $1758 Project B-S25 S14 S1 S2 a. What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions For example, an answer of S10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a mines sign. Do not round intermediate calculations. Round your answer to two decimal places. Project AS million Project B: S million What are the projects' NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of S10,550,000 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 AS million Project B: S 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 found intermediate calculations. Round your answer to two decimal places Project AS million Project B: S million 6. 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 B What are the projects IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: Project 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 90.37%) If the WACC was 10% and A and B were mutually exclusive, which project would you choose! (Hint: The crossover rate is 90.37%) If the WACC was 15% and A and B were mutually exclusive, which project would you choose (Hint: The crossover rate is 90.37%)

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