Question: need answer now pls. will give thumbs up. JC Inc. must install a new air-conditioning unit in its main plant. It is evaluating two different

 need answer now pls. will give thumbs up. JC Inc. must

install a new air-conditioning unit in its main plant. It is evaluating

need answer now pls. will give thumbs up.

two different models: A and B; both are expected to last five

JC Inc. must install a new air-conditioning unit in its main plant. It is evaluating two different models: A and B; both are expected to last five years and are equally efficient. The cash flows (in millions) are listed below. JC's WACC is 8%. What unit would you recommend? If WACC changes to 6%, which unit would you recommend? t= 0 1 2 3 A -500 -50 -50 -75 -75 -75 B - 100 - 150 -150 -150-175 -200 BB Indiferent CEA JC Inc. must install a new air-conditioning unit in its main plant. It is evaluating two different models: A and B; both are expected to last five years and are equally efficient. The cash flows (in millions) are listed below. JC's WACC is 8%. What unit would you recommend? If WACC changes to 6%, which unit would you recommend? t= 0 1 2 3 A -500 -50 -50 -75 -75 -75 B - 100 - 150 -150 -150-175 -200 BB Indiferent CEA A firm is considering two mutually exclusive projects, X and Y with the following cash flows, the projects are equally risky, and their WACC is 9.5%. What is the MIRR of the project that maximizes shareholder value? 0 1 2 3 4 5 Project X - 1,000 150 250 325 425 425 Project -1,000 750 250 175 125 100 O 16.97% 14.55% O 15.54% 13.13%

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