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A firm has a WACC of 8% and is deciding between two mutually exclusive projects. Project A has an initial investment of $63. The additional
A firm has a WACC of 8% and is deciding between two mutually exclusive projects. Project A has an initial investment of $63. The additional cash flows for project A are: year 1 = $17, year 2 = $37, year 3 = $61. Project B has an initial investment of $73.The cash flows for project B are: year 1 = $58, year 2 = $41, year 3 = $37. Calculate the payback and NPV for each project. (Show all answers to 2 decimals)
Payback for A:
Payback for B:
NPV for A:
NPV for B:
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