Homework answers / question archive / Your division is considering two projects with the following cash flows (in millions):   0 1 2 3 -$29 $15 $13 $3 Project A         -$16 $8 $3 $6 Project B                   What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions

Your division is considering two projects with the following cash flows (in millions):   0 1 2 3 -$29 $15 $13 $3 Project A         -$16 $8 $3 $6 Project B                   What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions

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

1. What are the projects' NPVs assuming the WACC is 5%? 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 intermediate calculations. Round your answer to two decimal places.

   Project A: $ million

   Project B: $ million

   What are the projects' NPVs assuming the WACC is 10%? 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 intermediate calculations. Round your answer to two decimal places.

   Project A: $ million

   Project B: $ million

   What are the projects' NPVs assuming the WACC is 15%? 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 intermediate calculations. Round your answer to two decimal places.

   Project A: $ million

   Project B: $ million

2. What are the projects' IRRs assuming the WACC is 5%? Do not round intermediate calculations. Round your answer to two decimal places.

   Project A: %

   Project B: %

   What are the projects' IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places.

   Project A: %

   Project B: %

   What are the projects' IRRs assuming the WACC is 15%? Do not round intermediate calculations. Round your answer to two decimal places.

   Project A: %

   Project B: %

3. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 5.9%.)

   -Select-Project AProject BNeither 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 5.9%.)

   -Select-Project AProject BNeither 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 5.9%.)

   -Select-Project AProject BNeither A nor B