A firm is evaluating two projects for this years capital budget. Its WACC is 14%. Project A costs $6,000 and its expected cash inflows would be $2,000 per year for 5 years. Project B costs $18,000 and its expected cash inflows would be $5,600 per year for 5 years. Calculate NPV and IRR for each project.

Refer to problem 7. Calculate the MIRR and payback for each project.

Refer to Problem 7. Calculate the discounted payback for each project.

Refer to Problem 7. If the projects were mutually exclusive, which one would you recommend? If the projects were independent, which one(s) would you recommend? Explain.