Capital Budgeting Criteria: Your division is considering two projects. Its WACC is 10%, and the projects' after-tax cash flows (in millions of dollars) would be as follows:
Year
0
1
2
3
4
Project A
Project B
-$30
-$30
$5
$20
$10
$10
$15
$8
$20
$6
- Calculate the projects
Capital Budgeting Criteria: Your division is considering two projects. Its WACC is 10%, and the projects' after-tax cash flows (in millions of dollars) would be as follows:
| Year | 0 | 1 | 2 | 3 | 4 |
| Project A Project B | -$30 -$30 | $5 $20 | $10 $10 | $15 $8 | $20 $6 |
- Calculate the projects
Related questions
Capital Budgeting Criteria
1) Calculate the projects' NPVs, IRRs, MIRRs, Regular Payback, and Discounted payback. 2) How might conflict exist between the NPV and the IRR when independent projects are evaluated?
| 0 | 1 | 2 | 3 | 4 | |
| Stream A | ($30) | $5 | $10 | $15 | $20 |
| Stream B | ($30) | $20 | $10 | $8 | $6 |
This is what I have so far, correct?
| NVP | IRR | MIRR | Reg Payback | Discounted Payback | |
| Stream A | $7.04 | 19.2% | 16.5% | 2.4 yrs | |
| Stream B | $5.96 | 22.5% | 15.6% | 2.727 yrs |
Two projects are being considered. WACC is 10 percent, and the projects' after-tax cash flows (in millions) are as follows:
Problem 11-6
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. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million
Project B $ millionWhat are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million
Project B $ millionWhat are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million
Project B $ million -
What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places.
Project A %
Project B %What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places.
Project A %
Project B %What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places.
Project A %
Project B %
