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Two projects have following projected cash flows: Period Project ABC Project XYZ T 0 -5 000 -10 000 T 1 1 000 3 000 T

  1. Two projects have following projected cash flows:

Period

Project ABC

Project XYZ

T0

-5 000

-10 000

T1

1 000

3 000

T2

-2 000

4 000

T3

4 000

-3 500

T4

5 000

6 000

T5

7 000

Use 8% WACC

  1. Find discounted payback period for both projects
  2. Find NPV for both projects
  3. Find profitability index for both projects

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