Question

Homework #11 6 x Your division is considering two projects with the following cash flows (in millions): $3 Project A Project B -$29 -$16 $15 $8 $13 $3 $6 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: $ million Project B: $ 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: $ million Project B: $ 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: $ million Project B: $ 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:

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

Answer 1

As per rules I am answering the first 4 subparts of the question

1:

	NPV At 5%
Project A	-0.33 million
Project B	-0.48 million

2:

	NPV At 10%
Project A	-2.37 million
Project B	-1.74 million

3:

	NPV At 15%
Project A	-4.15 million
Project B	-2.83 million

4:

	IRR at 5%
Project A	4.25%
Project B	3.30%

Workings

AutoSave © of HO- Book1 - Excel Sign in - o X File Home Insert Draw Page Layout Formulas Data Review View Help O Tell me what you want to do Share Comments = = open alle Calibri B I U - 11 - - A À - A - E = S General $ - % 9 Insert 2X Delete - Format 2' AZ O T 2 Sort & Find & ♡ Filter - Select Paste LE - Conditional Format as Formatting Table Cell Styles Clipboard Font Alignment Number Styles Cells Editing A2 А в 1 15 13 3 Project A 4. Project B Jo -29 -16 NPV At 5% =NPV(5%,C3:E3)+B3 =NPV(5%,C4:E4)+B4 6 Project A 7 Project B 8 Project A Project B IRR at 5% =IRR(B3:E3) =IRR(B4:E4) 10 Project A 11 Project B NPV At 10% =NPV(10%,C3:E3)+B3 =NPV(10%,C4:E4)+B4 12 13 14 Project A 15 Project B 16 17 NPV At 15% =NPV(15%,C3:E3)+B3 =NPV(15%,C4:E4)+B4