NPV Your division is considering two projects with the following cash flows (in
ID: 2616217 • Letter: N
Question
NPV
Your division is considering two projects with the following cash flows (in millions):
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 $ million
Project B $ 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. 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 $ million
Project B $ 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 $ million
Project B $ million
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 %
Explanation / Answer
Ans 1 & 4) NPV and IRR of project A & B is given in below tables
Ans 2 & 5) NPV and IRR of project A & B is given in below tables
Ans 3 & 6) NPV and IRR of project A & B is given in below tables
0 1 2 3 Project A -$11.00 $4.00 $7.00 $1.00 Present Value -$11.00 $3.81 $6.35 $0.86 NPV $0.02 IRR 5.12% 0 1 2 3 Project B -$20.00 $12.00 $5.00 $9.00 Present Value -$20.00 $11.43 $4.54 $7.77 NPV $3.74 IRR 15.43%Related Questions
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