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Q2) A firm has a WACC of 12.98% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.32. The
Q2) A firm has a WACC of 12.98% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.32. The additional cash flows for project A are: year 1 = $16.34, year 2 = $36.77, year 3 = $47.78. Project B has an initial investment of $74.42. The cash flows for project B are: year 1 = $59.37, year 2 = $40.04, year 3 = $38.27. 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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