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11-6) NVP - Your division is considering

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11-6) NVP - Your division is considering two projects with the following net cash flows (in millions);0 1 3 4;Project A -$25 $5 $10 $17;Project B -$20 $10 $ 9 $ 6;1. What are the projected NPV? assuming the WACC is 5%? 10%? 15%?;2. What is the project?s IRR at each of these WACC?;3. Notice the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%? 15%?;I have also attached this for you however, I need the formula written out -- thank you;Attachment Preview;11-6.docx;11-6) NVP - Your division is considering two projects with the following net cash flows (in;millions);0;1;3;4;Project A;-$25;$5;$10;$17;Project B;-$20;$10;$9;$6;1.;2.;3.;What are the projected NPV assuming the WACC is 5%? 10%? 15%?;What is the projects IRR at each of these WACC?;Notice the WACC was 5% and A and B were mutually exclusive, which project would;you;choose? What if the WACC was 10%? 15%?

 

Paper#34052 | Written in 18-Jul-2015

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