Question: Please write out formulas and calculations used. NPV Your division is considering two projects with the following cash flows (in millions): 3 2 + $10

 Please write out formulas and calculations used. NPV Your division is

Please write out formulas and calculations used.

NPV Your division is considering two projects with the following cash flows (in millions): 3 2 + $10 $9 Project A Project B 1 + $5 $10 - $25 - $20 $17 $6 a. What are the projectsNPVs assuming the WACC is 5%? 10%? 15%? Answer b. What are the projects' IRRs at each of these WACCs? Answer 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%.)

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