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
Project A
Project B
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 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 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 Do not round intermediate calculations. Round your answer to two decimal places.
Project A:
Project B:
c If the WACC was and A and B were mutually exclusive, which project would you choose? Hint: The crossover rate is
If the WACC was and A and B were mutually exclusive, which project would you choose? Hint: The crossover rate is
If the WACC was and A and B were mutually exclusive, which project would you choose? Hint: The crossover rate is
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