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Q2) A firm has a WACC of 12.91% and is deciding between two mutually exclusive projects. Project A has an initial investment of $64.49. The

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Q2) A firm has a WACC of 12.91% and is deciding between two mutually exclusive projects. Project A has an initial investment of $64.49. The additional cash flows for project A are: year 1 = $15.95, year 2 = $38.11, year 3 = $53.39. Project B has an initial investment of $70.24. The cash flows for project B are: year 1 = $53.42, year 2 = $47.76, year 3 = $21.37. 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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