Question: NPV Your division is considering two projects with the following cash flows (in millions) 0 Project A Project B -$25 $20 $5 $10 $10 $9
NPV Your division is considering two projects with the following cash flows (in millions) 0 Project A Project B -$25 $20 $5 $10 $10 $9 $17 $6 a. b. c. What are the projects' NPVs assuming the WACC is 5%? 10%2 15%? What are the projects' IRRs at each of these WACCs? If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%715%? (Hint: The crossover rate is?.81%)
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