EXCEL

considering two projects in its capital budget. Both projects' after-tax cash flows are shown below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4 year lives, and they have risk characteristics similar to the firm's average project. LIs WACC is 8%. (Round your answer to three decimal places) 1. What is Project a's payback and discounted payback? 2. What is Project bs payback and discounted payback? 4 Year Project a Project b 0 -1,150 -1,150 1 650 250 2 370 305 3 230 380 280 730