Question: Please explain a-c. Thank you! Your division is considering two projects with the following cash flows (in millions): a. What are the projects' NPVs assuming
Please explain a-c. Thank you! Your division is considering two projects with the following cash flows (in millions): a. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? b. What are the projects' IRRs at each of theses WACCs? c. If the WACC was 5% and A and B were mutually exclusive, which project would your choose? What if the WACC was 10%? 15%
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