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A firm has a WACC of 12.80% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.90. The
A firm has a WACC of 12.80% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.90. The additional cash flows for project A are: year 1 = $15.30, year 2 = $38.98, year 3 = $59.21. Project B has an initial investment of $70.73. The cash flows for project B are: year 1 = $52.72, year 2 = $40.05, year 3 = $31.07. Calculate the Following: A. Payback Period for Project A: B. Payback Period for Project B: C. NPV for Project A: D. NPV for Project B:
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