Question: Your division is considering two projects with the following cash flows (in millions): a. What are the projects' NPVs assuming the WACC is 5% ?

 Your division is considering two projects with the following cash flows

(in millions): a. What are the projects' NPVs assuming the WACC is

Your division is considering two projects with the following cash flows (in millions): 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. ProjectA:ProjectB:$$millionmillion What are the projects' NPVs assuming the WACC is 10% ? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. ProjectA:$ProjectB:$millionmillion 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. 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 3.86%.) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 3.86%.) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 3.86%.)

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!