Your division is considering two projects with the following cash flows (in millions): 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%? 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

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section: Chapter Questions
Problem 19P
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Your division is considering two projects with the following cash flows (in millions):
1
Project A
-$35
$4
$14
$20
Project B
-$15
$8
$5
$4
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:
$
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
Transcribed Image Text:Your division is considering two projects with the following cash flows (in millions): 1 Project A -$35 $4 $14 $20 Project B -$15 $8 $5 $4 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: $ 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
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