12-8: Payback Period Payback period Project K costs $75,000, its expected cash inflows are $15,000 per year for 6 years, and its WACC is 11%. What is the project's payback? Round your answer to two decimal places. years Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $70 $70 Project A Project B -$200 -$450 $350 $350 $70 $65 $230 $65 $230 $65 Which project would you recommend? Select the correct answer. O 1. Project B, since the NPVB > NPVA. O II. Both Projects A and B, since both projects have NPV'S > 0. O III. Neither A or B, since each project's NPV NPVB. O V. Both Projects A and B, since both projects have IRR's > 0. Discounted payback Project K costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 11%. What is the project's discounted payback? Round your answer to two decimal places. years IRR Project K costs $45,273.29, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. Capital budgeting criteria: mutually exclusive projects Project S costs $16,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $42,000 and its expected cash flows would be $14,300 per year for 5 years. If both projects have a WACC of 16%, which project would you recommend? Select the correct answer. O O O O I. Neither S or L, since each project's NPV 0. III. Both Projects S and L, since both projects have IRR's > 0. IV. Project L, since the NPVL > NPVS. O V. Project S, since the NPVs > NPVL. NPV Project K costs $60,000, its expected cash inflows are $12,000 per year for 11 years, and its WACC is 13%. What is the project's NPV? Round your answer to the nearest cent