Question

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

0

1

2

3

Project A	-$31	$7	$12	$22
Project B	-$19	$13	$6	$5

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:    %

Answer 1

1.
=NPV(5%,{-31;7;12;22})*(1+5%)=5.55544757585574

2.
=NPV(5%,{-19;13;6;5})*(1+5%)=3.14231724435806

3.
=NPV(10%,{-31;7;12;22})*(1+10%)=1.80991735537189

4.
=NPV(10%,{-19;13;6;5})*(1+10%)=1.53343350864012

5.
=NPV(15%,{-31;7;12;22})*(1+15%)=-1.37396235719569

6.
=NPV(15%,{-19;13;6;5})*(1+15%)=0.128790992027618

7.
=IRR({-31;7;12;22})=12.7447031118054%

8.
=IRR({-19;13;6;5})=15.4928669461512%

9.
=IRR({-31;7;12;22})=12.7447031118054%

10.
=IRR({-19;13;6;5})=15.4928669461512%

11.
=IRR({-31;7;12;22})=12.7447031118054%

12.
=IRR({-19;13;6;5})=15.4928669461512%