Question
A firm has a WACC of 8.67% and is deciding between two mutually exclusive projects.Project A has an initial investment of $61.68. The additional cash
A firm has a WACC of 8.67% and is deciding between two mutually exclusive projects.Project A has an initial investment of $61.68. The additional cash flows for project A are: year 1 = $15.85, year 2 = $35.61, year 3 = $43.04. Project B has an initial investment of $70.47. The cash flows for project B are: year 1 = $59.85, year 2 = $36.25, year 3 = $28.16. Calculate the Following:
-Payback Period for Project A:
-Payback Period for Project B:
-NPV for Project A:
-NPV for Project B:
Project Z has an initial investment of $64,458.00 .The project is expected to have cash inflows of $29,513.00 at the end of each year for the next 10.0 years.The corporation has a WACC of 8.37%.Calculate the NPV for project Z.
When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places.
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