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A firm with an 8% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate payback for the project that

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A firm with an 8% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate payback for the project that maximizes shareholder value. t = 0 1 2 N 3 4 5 Projects -40 18 18 18 10 10 Project T -65 20 20 20 25 25 04.12 years 2.22 years 3.20 years 3.22 years 2.02 years

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