Project A: Project Z:

Year 0 FCF: -$30 million Year 1 FCF: -$27 million

Year 1 FCF: $12 million Year 1 FCF: $11 million

Year 2 FCF: $12 million Year 2: FCF: $10 million

Year 3 FCF: $16 million Year 3 FCF: $15 million

Year 4 FCF: $16 million Year 4 FCF: $15.5 million

A. With a 14% WACC, Calculate NPV, IRR, MIRR & crossover rate for each project.

B. Assuming the projects are independent, which one(s) would you recommend?

C If the projects are mutually exclusive, which would you recommend?