Two projects have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$105,000 -$150,000 1 $30,000 $30,000 2 $45,000 $30,000 3 $30,000 $40,000 4 $15,000 $50,000 5 $44,500 $87,000 Both projects have a salvage value at the end of year 5 of $20,000 Calculate the NPVs and IRRS of each project, if the WACC is 6% and if it is 11%. Then answer the questions that follow. You may find it useful to enter your answers in the following table: NPV IRR Project A Project B Project A Project B @6% WACC @ 6% WACC @11% WACC @11% WACC Screenshot 2024-04-... i Q Q く NPV & IRR Refer to the NPV & IRR Scenario above. What is the Future Value of Project A if the WACC is 11%? 48,267 ○ $64,349 $103,818 ○ $71,701 $97,323
Two projects have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$105,000 -$150,000 1 $30,000 $30,000 2 $45,000 $30,000 3 $30,000 $40,000 4 $15,000 $50,000 5 $44,500 $87,000 Both projects have a salvage value at the end of year 5 of $20,000 Calculate the NPVs and IRRS of each project, if the WACC is 6% and if it is 11%. Then answer the questions that follow. You may find it useful to enter your answers in the following table: NPV IRR Project A Project B Project A Project B @6% WACC @ 6% WACC @11% WACC @11% WACC Screenshot 2024-04-... i Q Q く NPV & IRR Refer to the NPV & IRR Scenario above. What is the Future Value of Project A if the WACC is 11%? 48,267 ○ $64,349 $103,818 ○ $71,701 $97,323
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 21P
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