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Q) A firm has a WACC of 12.18% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.42. The
Q) A firm has a WACC of 12.18% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.42. The additional cash flows for project A are: year 1 = $18.76, year 2 = $35.64, year 3 = $59.90. Project B has an initial investment of $73.85. The cash flows for project B are: year 1 = $53.95, year 2 = $42.93, year 3 = $32.51. Calculate the Following: |
-Payback Period for Project A: |
-Payback Period for Project B: |
-NPV for Project A: |
-NPV for Project B: |
Q2) Project Z has an initial investment of $73,897.00 . The project is expected to have cash inflows of $28,966.00 at the end of each year for the next 20.0 years. The corporation has a WACC of 11.51%. Calculate the NPV for project Z. |
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