6. Problem 11.06 (NPV) 1 eBook # Problem Walk-Through Your division is considering two projects with the following cash

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6 Problem 11 06 Npv 1 Ebook Problem Walk Through Your Division Is Considering Two Projects With The Following Cash 1 (58.86 KiB) Viewed 19 times

6. Problem 11.06 (NPV) 1 eBook # Problem Walk-Through Your division is considering two projects with the following cash flows (in millions): 1 3 + 1 Project A $13 $8 -$27 -$25 Project B $14 $2 a. 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: $ Project B: $ 0 Project A: Project B: 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: $ 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: $ -Select- -Select- Project B: $ million b. What are the projects' IRRs assuming the WACC is 5%? Do not round intermediate calculations. Round your answer to two decimal places. % -Select- % V 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: c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.) % million % million % % 2 + $17 $11 million million If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)