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1. (25 points) Consider the forecast cash flows for two projects, as displayed in the table below (figures in millions). Furthermore, assume that the company's
1. (25 points) Consider the forecast cash flows for two projects, as displayed in the table below (figures in millions). Furthermore, assume that the company's WACC is 5%. Year 0 1 2. 3 4 5 Project A -82 13 18 22 29 23 Project B -35 3 5 7 15 19 A. Calculate the NPV for both projects. B. Calculate the IRR for both projects. C. Calculate the payback period for both projects. D. Calculate the crossover point for the two projects. E. Which project would you prefer if they were mutually exclusive
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
