Lesson 14 Quiz assignment

(Please show me the steps, how to do it manually.)

(Please do not show me excel steps and output)

Q) A firm has a WACC of 13.12% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.44. The additional cash flows for project A are: year 1 = $15.00, year 2 = $36.18, year 3 = $46.02. Project B has an initial investment of $70.40. The cash flows for project B are: year 1 = $59.29, year 2 = $46.44, year 3 = $23.50. Calculate the Following:

-Payback Period for Project A:

-Payback Period for Project B:

-NPV for Project A:

-NPV for Project B: