Question: Your division is considering two projects with the following cash flows ( in millions ) : 0 1 2 3 Project A - $ 2

Your division is considering two projects with the following cash flows (in millions):0123Project A-$25$5$10$17Project B-$20$10$9$6What 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: $ millionProject B: $ millionWhat 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: $ millionProject B: $ millionWhat 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: $ millionProject B: $ millionWhat 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: %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%.)If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 7.81%.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!