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...

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Finance

NPV

Your division is considering two projects with the followingcash flows (in millions):

0123
Project A-$20$5$9$12
Project B-$13$8$7$3
  1. What are the projects' NPVs assuming the WACC is 5%? Round youranswer to two decimal places. Do not round your intermediatecalculations. Enter your answer in millions. For example, an answerof $10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.
    Project A    $   million
    Project B    $   million

    What are the projects' NPVs assuming the WACC is 10%? Round youranswer to two decimal places. Do not round your intermediatecalculations. Enter your answer in millions. For example, an answerof $10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.
    Project A    $   million
    Project B    $   million

    What are the projects' NPVs assuming the WACC is 15%? Round youranswer to two decimal places. Do not round your intermediatecalculations. Enter your answer in millions. For example, an answerof $10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.
    Project A    $   million
    Project B    $   million

  2. What are the projects' IRRs assuming the WACC is 5%? Round youranswer to two decimal places. Do not round your intermediatecalculations.
    Project A   %
    Project B   %

    What are the projects' IRRs assuming the WACC is 10%? Round youranswer to two decimal places. Do not round your intermediatecalculations.
    Project A   %
    Project B   %

    What are the projects' IRRs assuming the WACC is 15%? Round youranswer to two decimal places. Do not round your intermediatecalculations.
    Project A   %
    Project B   %

  3. If the WACC was 5% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is3.86%.)

    If the WACC was 10% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is3.86%.)
    -

    If the WACC was 15% and A and B were mutually exclusive, whichproject would you choose?

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NPVYour division is considering two projects with the followingcash flows (in millions):0123Project A-$20$5$9$12Project B-$13$8$7$3What are the projects' NPVs assuming the WACC is 5%? Round youranswer to two decimal places. Do not round your intermediatecalculations. Enter your answer in millions. For example, an answerof $10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.Project A    $   millionProject B    $   millionWhat are the projects' NPVs assuming the WACC is 10%? Round youranswer to two decimal places. Do not round your intermediatecalculations. Enter your answer in millions. For example, an answerof $10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.Project A    $   millionProject B    $   millionWhat are the projects' NPVs assuming the WACC is 15%? Round youranswer to two decimal places. Do not round your intermediatecalculations. Enter your answer in millions. For example, an answerof $10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.Project A    $   millionProject B    $   millionWhat are the projects' IRRs assuming the WACC is 5%? Round youranswer to two decimal places. Do not round your intermediatecalculations.Project A   %Project B   %What are the projects' IRRs assuming the WACC is 10%? Round youranswer to two decimal places. Do not round your intermediatecalculations.Project A   %Project B   %What are the projects' IRRs assuming the WACC is 15%? Round youranswer to two decimal places. Do not round your intermediatecalculations.Project A   %Project B   %If the WACC was 5% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is3.86%.)If the WACC was 10% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is3.86%.)-If the WACC was 15% and A and B were mutually exclusive, whichproject would you choose?

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