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Q2) A firm has a WACC of 9.09% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.50. The

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Q2) A firm has a WACC of 9.09% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.50. The additional cash flows for project A are: year 1 = $17.95, year 2 = $38.68, year 3 = $52.82. Project B has an initial investment of $71.63. The cash flows for project Bare: year 1 = $58,51, year 2 = $45.72, year 3 = $25.23. 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 peats) d) NPV for Project B: (2 points)

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