Question: please show solutions 11-6 NPV Your division is considering two projects with the following cash flows (in millions): 3 0 H - $25 - $20

please show solutions 11-6 NPV Your division is considering two projects

with the following cash flows (in millions): 3 0 H - $25

- $20 1 + $5 $10 2. + $10 $9 Project A

please show solutions

11-6 NPV Your division is considering two projects with the following cash flows (in millions): 3 0 H - $25 - $20 1 + $5 $10 2. + $10 $9 Project A Project B $17 $6 a. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%? b. What are the projects' IRRs at each of these WACCs? c. 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%.) c. If the projects are mutually exclusive, which would you recommend? d. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR

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