Question: Your division is considering two projects with the following cash flows (in millions): 0 1 2 Project A $25 $5 $10 $17 Project B $20

 Your division is considering two projects with the following cash flows
(in millions): 0 1 2 Project A $25 $5 $10 $17 Project

Your division is considering two projects with the following cash flows (in millions): 0 1 2 Project A $25 $5 $10 $17 Project B $20 $10 $9 $6 a. What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million What are the projects NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million What are the projects NPVs assuming the WACC is 15%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate 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: 90 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 : 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%.) Select if the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 7.81%.) Select if the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 7.81%)

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