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attached our only 2 questions related to npvplease help with the following . A firm has a WACC of 9% and is deciding between two
attached our only 2 questions related to npvplease help with the following .
A firm has a WACC of 9% 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 = $39, year 3 = $43. Project B has an initial investment of $74.The cash flows for project B are: year 1 = $59, year 2 = $35, year 3 = $30. Calculate the payback and NPV for each project. (Show all answers to 2 decimals. Round your answer to the nearest 2 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer. If your answer ends in a zero, only include 1 decimal place and omit the zero. If the answer ends in two zeros after rounding, do not use any decimal places as software does not recognize the ".00" endings and will remove points from your score.) Payback for A = ________ Payback for B = __________ NPV for A = ___________ NPV for B = _____________ 2. Project Z has an initial investment of $51,000. The project is expected to have cash inflows of $27,000 at the end of each year for the next 15 years. The corporation has a WACC of 9%. Calculate the NPV for project Z. NPV (nearest dollar) = ______________Step by Step Solution
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