Year | A | B | |
0 | -17 | -26 | |
1 | 8 | 13 | |
2 | 8 | 10 | |
3 | 3 | 9 | |
NPV (5%) | $0.47 | $3.23 | Select B |
NPV (10%) | ($0.86) | $0.84 | Select B |
NPV (15%) | ($2.02) | ($1.22) | Select B |
IRR | 6.68% | 11.96% |
NPV and IRR can be calculated using the same function on a calculator
Insert Cash flows (CF) and I/Y = WACC, then compute NPV
IRR remains the same irrespective of WACC.
Select Projects with higher NPVs, which is Project B for all WACCs.
h 11: End-of-Chapter Problems - The Basics of Capital Budgeting Your division is considering two projects with the...
ham Chapter 11 End-of-Chapter Problems a Search this course 4. NPV Your division is considering two projects with the following cash flows (in millions): 54 $12 Project A -511 Project B -$20 a. 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...
End-of-Chapter Problems - The Basics of Capital Budgeting 1 $15 $3 ject A aject B -$29 -$16 $13 $3 a. 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 $ 2.00 million Project B $ 0.97 million What are...
Your division is considering two projects with the following cash flows (in millions): 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....
Problem 11-6 NPV Your division is considering two projects with the following cash flows (in millions): - T Project A $14 $20 Project B -$15 $5 a. 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...
11-4 NPV 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...
Problem 11-6 NPV Your division is considering two projects with the following cash flows (in millions): 2 $20 $8 Project A -$21 $14 $9 $3 Project B -$35 a. 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 $...
Your division is considering two projects with the following cash flows (in millions): $4 s14 Project A Project B -$35 -$15 $20 $4 $5 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:...
Your division is considering two projects with the following cash flows (in millions): Iw $4 Project A Project B -$11 - $20 $12 $5 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:...
Your division is considering two projects with the following cash flows (in millions): $5 $12 Project A Project B -$20 -$13 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...
Your division is considering two projects with the following cash flows (in millions): 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...