In: Finance
Problem 11-3
Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project’s discounted payback? Round your answer to two decimal places.
years
Problem 11-13
net present value
A firm with a WACC of 10% is considering the following mutually exclusive projects:
0 |
1 |
2 |
3 |
4 |
5 |
Project A -$450 |
$75 |
$75 |
$75 |
$225 |
$225 |
Project B -$550 |
$200 |
$200 |
$55 |
$55 |
$55 |
Which project which you recommend?why?
Problem 11-4 Project S costs $20,000 and its expected cash flows would be $5,500 per year for 5 years. Mutually exclusive Project L costs $39,000 and its expected cash flows would be $12,100 per year for 5 year. If both project have a WCC of 12%, which project would you recommend? Why? |