Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$19 $8 $15 $17 Project B -$17 $11 $8 $6 What are...

90.2K

Verified Solution

Question

Finance

Your division is considering two projects with the followingcash flows (in millions):
0 1 2 3
Project A -$19 $8 $15 $17
Project B -$17 $11 $8 $6
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
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   %
If the WACC was 5% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is89.04%.)
-Select-Project AProject BNeither A, nor BItem 13
If the WACC was 10% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is89.04%.)
-Select-Project AProject BNeither A, nor BItem 14
If the WACC was 15% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is89.04%.)
-Select-Project AProject BNeither A, nor B

Answer & Explanation Solved by verified expert

3.6 Ratings (422 Votes)

As per rules I am answering the first 4 subparts of See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Your division is considering two projects with the followingcash flows (in millions):0123Project A-$19$8$15$17Project B-$17$11$8$6What 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 is89.04%.)-Select-Project AProject BNeither A, nor BItem 13If the WACC was 10% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is89.04%.)-Select-Project AProject BNeither A, nor BItem 14If the WACC was 15% and A and B were mutually exclusive, whichproject would you choose? (Hint: The crossover rate is89.04%.)-Select-Project AProject BNeither A, nor B