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Q2) A firm has a WACC of 9.32% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.78. The
Q2) A firm has a WACC of 9.32% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.78. The additional cash flows for project A are: year 1 = $17.67, year 2 = $36.32, year 3 = $48.38. Project B has an initial investment of $72.71. The cash flows for project B are: year 1 = $51.70, year 2 = $39.41, year 3 = $22.75. 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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