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Q2) A firm has a WACC of 10.84% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.16. The
Q2) A firm has a WACC of 10.84% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.16. The additional cash flows for project A are: year 1 = $16.41, year 2 = $36.30, year 3 = $43.65. Project B has an initial investment of $73.93. The cash flows for project B are: year 1 = $56.31, year 2 = $39.27, year 3 = $29.08. 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)
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