In: Finance
NPV
Your division is considering two projects with the following cash flows (in millions):
0 | 1 | 2 | 3 |
Project A | -$20 | $5 | $9 | $12 |
Project B | -$13 | $8 | $7 | $3 |
What are the projects' NPVs assuming the WACC is 5%? Round your
answer to two decimal places. Enter your answer in millions. For
example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 10%? Round your
answer to two decimal places. Enter your answer in millions. For
example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 15%? Round your
answer to two decimal places. Enter your answer in millions. For
example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million
Project B $ million
What are the projects' IRRs assuming the WACC is 5%? Round your
answer to two decimal places.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 10%? Round your
answer to two decimal places.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 15%? Round your
answer to two decimal places.
Project A %
Project B %
If the WACC were 5% and A and B were mutually exclusive, which
would you choose? (Hint: The crossover rate is
3.86%.)
-Select-Project AProject BNeither A, nor BItem 13
If the WACC were 10% and A and B were mutually exclusive, which
would you choose? (Hint: The crossover rate is
3.86%.)
-Select-Project AProject BNeither A, nor BItem 14
If the WACC were 15% and A and B were mutually exclusive, which
would you choose? (Hint: The crossover rate is
3.86%.)
-Select-Project AProject BNeither A, nor B