McCall Manufacturing has a WACC of 10 The firm is considering two normal

Mccall manufacturing has a wacc of 10 the firm is

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McCall Manufacturing has a WACC of 10%. The firm is considering two normal, equally risky, mutually exclusive, but not repeatable projects. The two projects have the same investment costs, but Project A has an IRR of 15%, while Project B has an IRR of 20%. Which of the following statements is CORRECT?a.Each project must have a negative NPV.b.Since the projects are mutually exclusive, the firm should always select Project B.c.If the crossover rate is 8%, Project B will have the higher NPV.d.Only one project has a positive NPV.e.If the crossover rate is 8%, Project A will have a higher NPV than Project B.
__C__ 23.Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one cash outflow at t = 0 followed by a series of positive cash flows.__A__25.Edmondson Electric Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.WACC:10.00%Year:0123Cash flows:\$1,000\$500\$500\$500Johnson Enterprises is considering a project that has the following cash flow and WACC data. What is theproject's NPV? Note that if a project's projected NPV is negative, it should be rejected.WACC:10.00%Year:01234Cash flows:\$1,000\$350\$350\$350\$350a.\$98.78b.\$103.98c.\$109.45d.\$114.93e.\$120.67
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