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What is the project npvs

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Reference no: EM133060707

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

0___________1__________2__________3

Project A       -$25             $5                $10               $17

Project B       -$20             $10               $9                $6

  1. What is the project's NPVs assuming the WACC is 5%? 10%? 15%
  2. What are the project's IRRs at each of these WACCs?
  3. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What is the WACC was 10% 15% (Hint: The crossover rate is 7.81%)

Reference no: EM133060707

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