Capital Budgeting Assignment 1. You are considering an investment in two projects, A and B. Both projects will cost $115,000, and the projected cash flows are as follows: Year Project A Project B 0 2 3 (115,000) 7,188 21,562 40,250 50,315 57,500 (115,000) 51,750 38,812 28,750 21,563 14,375 4 5 a. Assuming that the WACC is 9.4%, calculate the payback period, NPV, PI, IRR. If the projects are mutually exclusive (meaning you can only select one), which project should be selected? b. Using goal seek, calculate the year 4 cashflow for project A that will make the project break even. (NPV = 0)