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Identify the projected NPV value in each WACC assumption

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Reference no: EM133088033

Question - Jackson Winarto is a division chairman who is considering two projects. He estimates three kinds of WACC assumptions, namely 5%, 12%, and 18%. The following is the cash flow value (in million) of each project that Jackson is considering:

 

Year 0

Year 1

Year 2

Year 3

Project Alfa

(Rp30)

Rp6

Rp13

Rp19

Project Beta

(Rp25)

Rp11

Rp12

Rp8

Based on this information, help Jackson to:

a. Identify the projected NPV value in each WACC assumption.

b. Identify the projected IRR value in each WACC assumption.

c. Select the project that needs to be taken on each WACC assumption, with additional information on the mutually exclusive nature of the project.

Reference no: EM133088033

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