Question: Problem 11-6 NPV Your division is considering two projects with the following cash flows (in millions): Project A -$31 $7 $12 $22 Project B -$19
Problem 11-6 NPV
Your division is considering two projects with the following cash flows (in millions):
| Project A | -$31 | $7 | $12 | $22 |
| Project B | -$19 | $13 | $6 | $5 |
What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million
What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million
What are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million
What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places. Project A % Project B %
What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places. Project A % Project B %
What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places. Project A % Project B %
If the WACC were 5% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 10.72%.)
If the WACC were 10% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 10.72%.)
If the WACC were 15% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 10.72%.)
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