Question: Year 0 1 2 3 Project A - 2 5 5 1 0 1 7 Project B - 2 0 1 0 9 6 Your

Year 0123
Project A -2551017
Project B -201096
Your division is considering two projects with the following cash flows (in millions):
calculations. Round your answer to two decimal places.
Project A: $ million
Project B: $ million
calculations. Round your answer to two decimal places.
Project A: $
million
Project B:
million
calculations. Round your answer to two decimal places.
Project A: $
million
Project B: $
million
b. What are the projects' IRRs assuming the WACC is 5%? Do not round intermediate calculations. Round your answer to two decimal places.
Project A: %
Project B: %
What are the projects' IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places.
Project A: %
Project B: %
What are the projects' IRRs assuming the WACC is 15%? Do not round intermediate calculations. Round your answer to two decimal places.
Project A: %
Project B: %
c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 7.81%.)
If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 7.81%.)
1
If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 7.81%.)
Year 0 1 2 3 Project A - 2 5 5 1 0 1 7 Project B

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