In: Finance
NPV
Your division is considering two projects with the following cash flows (in millions):
0 | 1 | 2 | 3 |
Project A | -$17 | $8 | $8 | $3 |
Project B | -$26 | $13 | $10 | $9 |
What are the projects' NPVs assuming the WACC is 5%? Round your
answer to two decimal places. Do not round your intermediate
calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 10%? Round your
answer to two decimal places. Do not round your intermediate
calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 15%? Round your
answer to two decimal places. Do not round your intermediate
calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
Project A $ million
Project B $ million
What are the projects' IRRs assuming the WACC is 5%? Round your
answer to two decimal places. Do not round your intermediate
calculations.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 10%? Round your
answer to two decimal places. Do not round your intermediate
calculations.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 15%? Round your
answer to two decimal places. Do not round your intermediate
calculations.
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
20.19%.)
a.Project A b. Project B c. Neither A, nor B
If the WACC was 10% and A and B were mutually exclusive, which
project would you choose? (Hint: The crossover rate is
20.19%.)
a.Project A b.Project B c.Neither A, nor B
If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 20.19%.). a.Project A b.Project B c.Neither A, nor B