What are the projects irrs at each of these waccs


Problem

NPV Your division is considering two projects with the following cash flows (in millions): 0123 Project A $25 $5 $10 $17 Project B $20 $10 $9 $6.

i. What are the projects' NPVs assuming the WACC is 5%? 10%? 15%?

ii. What are the projects' IRRs at each of these WACCs?

iii. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%? 15%? (Hint: The crossover rate is 7.81%.)

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Managerial Accounting: What are the projects irrs at each of these waccs
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