What are the projects IRRs assuming the WACC

Assignment Help Financial Management
Reference no: EM132068945

Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$11 $4 $7 $1 Project B -$20 $12 $5 $9 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 26.71%.) If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 26.71%.) If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 26.71%.)

Reference no: EM132068945

Questions Cloud

Assume continuous leverage rebalancing : What would be Johnston's WACC if it were 100% equity financed? Assume continuous leverage rebalancing.
Assembly line currently has five workstations : An assembly line currently has five workstations, What is the current cycle time? What is the hourly production rate of the current process?
Calculate accounting break-even and cash break-even points : Calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.
What are the implications for capital structure : What is the cost of equity after the debt issue? What is the weighted average cost of capital? What are the implications for capital structure?
What are the projects IRRs assuming the WACC : What are the projects' NPVs assuming the WACC is 5%? What are the projects' IRRs assuming the WACC is 15%?
What is remote cost of equity : What is Remote's cost of equity? If Remote converts to 50 per cent debt, what will its cost of equity be?
Compare the capital and reserve requirements : Compare the capital and reserve requirements for life insurance and property-casualty insurance companies.
Calculate the annual fuel savings : Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 7,000 miles per year.
Find the highest level of fixed costs : Assuming that the price per carton is $16.10, find the highest level of fixed costs you could afford each year and still break even.

Reviews

Write a Review

Financial Management Questions & Answers

  Use an interest-rate swap to save their borrowing cost

Based on the above information, can Companies A and B use an interest-rate swap to save their borrowing cost? Explain briefly.

  Find the values assuming a regular or ordinary-annuity

Find the following values assuming a regular, or ordinary, annuity:assuming: A regular or ordinary annuity. An annuity due

  What is the trading process that eliminates exchange rate

What is the trading process that eliminates exchange rate differentials across the markets for a single currency?

  Tax treatment of payments to securities holder

Regarding the tax treatment of payments to securities holders,

  What price would you estimate for halliford stock

If Halliford's equity cost of capital is 10.9%, what price would you estimate for Halliford stock?

  What would be the new expected rate of return for ge stock

Under CAPM, General electric sock has an expected return of 13.3%, what would be the new expected rate of return for GE stock

  Maximum total investment-proposal financially feasible

what is the maximum total investment (combined equity funds) that will make the above proposal financially feasible?

  What is the weighted average cost of capital for a firm

What is the weighted average cost of capital for a firm?- How are taxes accounted for when we calculate the cost of debt?

  What is the net present value of this to your business

what is the net present value of this to your business and should you go ahead with it?

  Corporation is considering two locations for water park

The Wisconsin Trip Corporation is considering two locations for a water park.

  What net present value will be involved-breakeven volume

What net present value will be involved and what will be the breakeven volume?

  What are current assets

McConnell Corp. has a book value of equity of $13,205. Long-term debt is $8,200. Net working capital, other than cash, is $3,205. Fixed assets are $17,380. How much cash does the company have? If current liabilities are $1,630, what are current asset..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd