A. As the capital budgeting director for the Crush Corporation, you are evaluating two mutually exclusive projects with the following free cash flows:

		Project X	Project Z
	Year	Cash Flow	Cash Flow
	0	-$125,000	-$125,000
	1	55,000	15,000
	2	50,000	40,000
	3	40,000	50,000
	4	10,000	65,000

Assuming a WACC of 11%, calculate the NPV and IRR for both projects.

Which project(s) should Crush accept and why?

B. Crush. has an investment opportunity that will yield cash flows of $33,000 per year in Years 1 through 4, $37,000 per year in Years 5 through 9, and $43,000 in Year 10. This investment will cost $225,000 today, and the firm's WACC is 10%. What is the payback period for this investment and what is the NPV? Should this project be accepted; why or why not?