Projects’ NPVs Assignment | Homework For You
Your division is considering two projects with the following cash flows (in millions)
0 1 2 3
Project A $27 $13 $17 $8
Project B $25 $14 $11 $2
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
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: %
– If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
– 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%.)Get Finance homework help today
