Q2) A firm has a WACC of 14.87% and is deciding between two mutually exclusive projects.Project A
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Q2) A firm has a WACC of 14.87% and is deciding between two mutually exclusive projects.Project A has an initial investment of $60.31. The additional cash flows for project A are: year 1 = $18.69, year 2 = $37.06, year 3 = $41.47. Project B has an initial investment of $70.38. The cash flows for project B are: year 1 = $58.89, year 2 = $38.62, year 3 = $21.08. 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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