Question: ur division is considering two projects with the following cash flows (in 11-6 NPV Yo millions): Project A Project B -$25 -$20 $5 $10 $10
ur division is considering two projects with the following cash flows (in 11-6 NPV Yo millions): Project A Project B -$25 -$20 $5 $10 $10 $9 $17 $6 a. What are the projects' NPVs assuming the WACC is 5%? 10%715%? 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%715%? (Hint: The crossover rate is 7.81%)
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