S Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A Project B -$16 $7 -$26 $14 $9 $20 $10 $11 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 $ million 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. mikas sign. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a Project A $ Project B $ million 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 Project B $ million million 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. 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 48.57%.) -Select- 1:12 PM 7/22/2024 A
S Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A Project B -$16 $7 -$26 $14 $9 $20 $10 $11 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 $ million 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. mikas sign. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a Project A $ Project B $ million 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 Project B $ million million 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. 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 48.57%.) -Select- 1:12 PM 7/22/2024 A
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:S
Your division is considering two projects with the following cash flows (in millions):
0
1
2
3
Project A
Project B
-$16
$7
-$26
$14
$9
$20
$10
$11
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 $
million
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.
mikas sign.
For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a
Project A $
Project B
$
million
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
Project B
$
million
million
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.
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 48.57%.)
-Select-
1:12 PM
7/22/2024
A
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