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Q2) A firm has a WACC of 14.77% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.45. The
Q2) A firm has a WACC of 14.77% and is deciding between two mutually exclusive projects.
Project A has an initial investment of $61.45. The additional cash flows for project A are: year 1 = $18.85, year 2 = $37.44, year 3 = $48.10.
Project B has an initial investment of $74.40. The cash flows for project B are: year 1 = $51.81, year 2 = $48.58, year 3 = $25.93. Calculate the Following:
a) Payback Period for Project A:
b) Payback Period for Project B:
c) NPV for Project A:
d) NPV for Project B:
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