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A firm has a WACC of 12.23% and is deciding between two mutually exclusive projects. Project A has an initial investment of $63.32. The
A firm has a WACC of 12.23% and is deciding between two mutually exclusive projects. Project A has an initial investment of $63.32. The additional cash flows for project A are: year 1 = $18.29, year 2 = $36.91, year 3 = $68.47. Project B has an initial investment of $74.80. The cash flows for project B are: year 1 = $59.52, year 2 = $42.15, year 3 = $40.00. Calculate the following: A. Payback Period for Project A (round your answer to the nearest 2 decimal places): 2.12 B. Payback Period for Project B (round your answer to the nearest 2 decimal places): 1.36 C. NPV for Project A: $ 30.72 D. NPV for Project B: $ 39.99
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