Question
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
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 | 3 | 4 | 5 |
| Project S | -40 | 18 | 18 | 18 | 10 | 10 |
| Project T | -65 | 20 | 20 | 20 | 25 | 25 |
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Lords Of Finance The Bankers Who Broke The World
Authors: Liaquat Ahamed
1st Edition
0143116800, 978-0143116806
