Your division is considering two projects with the following cash flows (in millions): 2 3 + Project -$31 $7 $12 $22 A Project -$19 $13 $6 $5 B 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: $ 162. million Project B: $ 123. 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: $ 18.1 million Project B: $ 23.5 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. Da not round intermediate calculations. Round your answer to two decimal places. Project A: $ 15.6 million Project B: $ 17.4 million b. 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: % c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select- If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select- If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select-

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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Part B and C please.
Your division is considering two projects with the following cash flows (in millions):
2
Project
-$31
$7
$12
$22
A
Project
-$19
$13
$6
$5
B
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: $ 162. million
Project B: $ 123. 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: $ 18.1 million
Project B: $ 23.5 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: $ 15.6 million
Project B: $ 17.4 million
b. 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:
%
c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.)
-Select-
If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.)
-Select-
If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.)
-Select-
Transcribed Image Text:Your division is considering two projects with the following cash flows (in millions): 2 Project -$31 $7 $12 $22 A Project -$19 $13 $6 $5 B 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: $ 162. million Project B: $ 123. 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: $ 18.1 million Project B: $ 23.5 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: $ 15.6 million Project B: $ 17.4 million b. 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: % c. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select- If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select- If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 10.72%.) -Select-
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