CENGAGE | MINDTAP

Ch 11-End-of-Chapter Problems - The Basics of Capital Budgeting

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: $

milion

million

Project B: $

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 8.76%)

If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 8.76%)

Select

Project A

Project B

Neither Aner B

15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 8.76%)

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