Q2) A firm has a WACC of 10.42% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.47. The additional cash flows for project A are: year 1 = $15.64, year 2 = $37.80, year 3 = $41.10. Project B has an initial investment of $73.92. The cash flows for project B are: year 1 = $59.89, year 2 = $45.56, year 3 = $33.69.

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)