NPV
Your division is considering two projects with the following cash flows (in millions):
0 | 1 | 2 | 3 |
Project A | -$11 | $4 | $7 | $1 |
Project B | -$20 | $12 | $5 | $9 |
What are the projects' NPVs assuming the WACC is 5%? Round your
answer to two decimal places. Do not round your intermediate
calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 10%? Round your
answer to two decimal places. Do not round your intermediate
calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 15%? Round your
answer to two decimal places. Do not round your intermediate
calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
Project A $ million
Project B $ million
What are the projects' IRRs assuming the WACC is 5%? Round your
answer to two decimal places. Do not round your intermediate
calculations.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 10%? Round your
answer to two decimal places. Do not round your intermediate
calculations.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 15%? Round your
answer to two decimal places. Do not round your intermediate
calculations.
Project A %
Project B %
If the WACC was 5% and A and B were mutually exclusive, which
project would you choose? (Hint: The crossover rate is
26.71%.)
-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
26.71%.)
-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
26.71%.)
-Select-Project AProject BNeither A, nor BItem 15
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