NPV Your division is considering two projects with the following cash flows (in
ID: 2797756 • 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 %
If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
-Select-Project AProject BNeither A, nor BItem 13
If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
-Select-Project AProject BNeither A, nor BItem 14
If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
-Select-Project AProject BNeither A, nor BItem 15
Explanation / Answer
In case of Multiple question chegg expert need to answer four question
Project A
Using Financial Calculator
CF0=-27 (press enter) [Press down Key]
CF1= 13 (press enter) [Press down Key]
F01=1 (press enter) [Press down Key]
CF2= 17 (press enter) [Press down Key]
F02=1 (press enter) [Press down Key]
CF3=8 (press enter) [Press down Key]
F03=1 (press enter) [Press down Key]
Press NPV
Interest =5
Press CPT and NPV
NPV=7.71
Press NPV
Interest =10
Press CPT and NPV
NPV=4.88
Press NPV
Interest =15
Press CPT and NPV
NPV=2.42
Press IRR+ Press CPT
IRR=20.67%
Project B
Using Financial Calculator
CF0=-25 (press enter) [Press down Key]
CF1= 14 (press enter) [Press down Key]
F01=1 (press enter) [Press down Key]
CF2= 11 (press enter) [Press down Key]
F02=1 (press enter) [Press down Key]
CF3=2 (press enter) [Press down Key]
F03=1 (press enter) [Press down Key]
Press NPV
Interest =5
Press CPT and NPV
NPV=0.04
Press NPV
Interest =10
Press CPT and NPV
NPV=-1.68
Press NPV
Interest =15
Press CPT and NPV
NPV=-3.19
Press IRR+ Press CPT
IRR=5.10%
Answer 1 Project A- NPV=7.71
Project B- NPV=0.04
Answer 2 Project A- NPV=4.88
Project B- NPV=-1.68
Answer 3 Project A- NPV=2.42
Project B- NPV=-3.19
Answer 4 Project A-IRR=20.67%
Project B- IRR=5.10%
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