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Q2) A firm has a WACC of 8.30% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.41. The
Q2) A firm has a WACC of 8.30% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.41. The additional cash flows for project A are: year 1 = $15.00, year 2 = $35.00, year 3 = $42.63. Project B has an initial investment of $71.12. The cash flows for project B are: year 1 = $59.75, year 2 = $47.98, year 3 = $22.01. 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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