Question: NPV Your division is considering two projects with the following cash flows (in millions): 2 Project A Project B -$25 -$20 $5 $10 $10 $9

NPV Your division is considering two projects with the following cash flows (in millions): 2 Project A Project B -$25 -$20 $5 $10 $10 $9 $17 $6 What are the projects' NPVs assuming the WACC is 5%? 10%715%? 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%? 15%? (Hint: The crossover rate is 7.81%.) a. b

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