Your division is considering two projects with the following cash flows (in millions):
0 1 2 3
Project A -$35 $4 $14 $20
Project B -$15 $8 $5 $4
A) 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, Project B
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, Project B
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, Project B
B) 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.
C) If the WACC were 5% and A and B were mutually exclusive, which would you choose? (Hint: the crossover rate is 1.66%)
Project A, Project B, Neither A nor B
If the WACC were 10% and A and B were mutually exclusive, which would you choose? (Hint: the crossover rate is 1.66%)
Project A, Project B, Neither A nor B
If the WACC were 15% and A and B were mutually exclusive, which would you choose? (HInt: the crossover rate is 1.66%)
Project A, Project B, Neither A nor B