Your division is considering two projects with the followingcash flows (in millions): 0 1 2 3 Project A -$20 $5 $9 $12 ProjectB -$13 $8 $7 $3 What are the projects' NPVs assuming the WACC is5%? 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 intermediatecalculations. Round your answer to two decimal places.
Project A: $ million
Project B: $ million
What are the projects' NPVs assuming the WACC is 10%? Enter youranswer in millions. For example, an answer of $10,550,000 should beentered as 10.55. Negative values, if any, should be indicated by aminus sign. Do not round intermediate calculations. Round youranswer to two decimal places.
Project A: $ million
Project B: $ million
What are the projects' NPVs assuming the WACC is 15%? Enter youranswer in millions. For example, an answer of $10,550,000 should beentered as 10.55. Negative values, if any, should be indicated by aminus sign. Do not round intermediate calculations. Round youranswer to two decimal places.
Project A: $ million
Project B: $ million
What are the projects' IRRs assuming the WACC is 5%? Do notround intermediate calculations. Round your answer to two decimalplaces.
Project A: %
Project B: %
What are the projects' IRRs assuming the WACC is 10%? Do notround intermediate calculations. Round your answer to two decimalplaces.
Project A: %
Project B: %
What are the projects' IRRs assuming the WACC is 15%? Do notround intermediate calculations. Round your answer to two decimalplaces.
Project A: %
Project B: %
If the WACC was 5% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is 3.86%.)
If the WACC was 10% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is 3.86%.)
If the WACC was 15% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is 3.86%.)
