Question: please show formulas Your division is considering two projects. Its WACC is 12%, and the projects after-tax cash flows (in millions of dollars) would be

please show formulas please show formulas Your division is considering two projects. Its WACC

Your division is considering two projects. Its WACC is 12%, and the projects after-tax cash flows (in millions of dollars) would be as follows: 2 3 4 5 6 7 8 Time 0 1 2. 3 4 Expected net cash flows Project A Project B (540) (540) $10 $25 $15 $15 $20 $13 $25 $11 You need to find the NPV, IRR, MIRR, Discounted Payback and NPV profile in this question. 9 10 11 12 13 14 15 16 17 18 19 20 21 a. Calculate the projects' NPVs, IRRS, MIRRs, and discounted paybacks. WACC = 12% NPVA = $11.10 NPVB = $10.52 IRRA IRRB = 22 23 24 25 26 Reinvestment rate is 8%. MIRRA MIRRB = MIRRB - Project A Time period: 0 Cash flow: (40.00) PV cash flow: Disc cumul cash flow: 1 10.00 2 15.00 3 20.00 25.00 PaybackA: 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Project B Time period: 0 Cash flow: (40.00) PV cash flow: Disc cumul cash flow: 1 25.00 2 15.00 3 13.00 4 11.00 PaybackB: b. Find each projects's NPV profiles for the two projects. Identify each projects' IRRs and approximate cross-over pain Explain the significance of the cross-over points. For instance, is it better to switch from one project to another, just because the WACC changed? Project A Project B 45 46 47 48 49 50 Explain: 0.00% 2.00% 4.00% project to another, just because the WACC changed? Project A Project B Explain: 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00% 26.00% 28.00%

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