Q2) A firm has a WACC of 10.37% and is deciding between two mutually exclusive projects. Project A has an initial investment of $64.46. The additional cash flows for project A are: year 1 = $15.79, year 2 = $38.13, year 3 = $43.38. Project B has an initial investment of $72.78. The cash flows for project B are: year 1 = $57.51, year 2 = $44.86, year 3 = $35.43. Calculate the Following: a) Payback Period for Project A: (2 points) b) Payback Period for Project B: (2 points) c) NPV for Project A: (2 points) d) NPV for Project B: (2 points) Q3) Project Z has an initial investment of $75,481.00. The project is expected to have cash inflows of $22,877.00 at the end of each year for the next 13.0 years. The corporation has a WACC of 11.65%. Calculate the NPV for project Z. (2 points) Q4) Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $61,267.00 seven years ago. The old equipment currently has no market value. The new equipment cost $66,876.00. The new equipment will be depreciated to zero using straight-line depreciation for the four-year life of the project. At the end of the project the equipment is expected to have a salvage value of $20,003.00. The new equipment is expected to save the firm $35,700.00 annually by increasing efficiency and cost savings. The corporation has tax rate of 34.42% and a required return on capital of 10.38% a) What is the total initial cash outflow? (show as negative number - 2.5 Points) b) What are the estimated annual operating cash flows? (2.5 Points) c) What is the terminal cash flow? (2.5 Points) d) What is the NPV for this project? (2.5 Points)