In: Finance
Q) A firm has a WACC of 10.27% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.22. The additional cash flows for project A are: year 1 = $17.13, year 2 = $36.95, year 3 = $44.72. Project B has an initial investment of $72.28. The cash flows for project B are: year 1 = $52.10, year 2 = $45.47, year 3 = $39.43. 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: