Question: NPV Your division is considering two projects with the following cash flows (in millions): 0 2 3 1 Project A -$35 $4 $14 $20 Project

 NPV Your division is considering two projects with the following cashflows (in millions): 0 2 3 1 Project A -$35 $4 $14

NPV Your division is considering two projects with the following cash flows (in millions): 0 2 3 1 Project A -$35 $4 $14 $20 Project B - $15 $8 $5 $4 a. What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter you example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ -1.214 million Project B $ 0.607 million What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter y example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ -4.742 million Project B $ 0.577 million What are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter y example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ million Project B million b. What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B % What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A % Project B % $ What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations. 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 1.66%.) Project B If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.) Neither A, nor BV If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 1.66%.) Neither A, nor BV

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