Q2) A firm has a WACC of 11.56% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.61. The additional cash flows for project A are: year 1 = $19.45, year 2 = $37.08, year 3 = $59.34. Project B has an initial investment of $73.10. The cash flows for project B are: year 1 = $53.02, year 2 = $36.46, year 3 = $31.23. 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)