Question

In: Accounting

Year Project A Project B 0 -$150,000 -$150,000 1 8,000 80,000 2 30,000 40,000 3 45,000...

Year

Project A

Project B

0

-$150,000

-$150,000

1

8,000

80,000

2

30,000

40,000

3

45,000

35,000

4

55,000

25,000

5

85,000

20,000

At what WACC would there be a break-even between the two projects?

  1. 7.23%
  2. 8.48%
  3. 7.57%
  4. 7.89%
  5. What is the NPV for Project A assuming the WACC is 10%?
    1. $5,653.94
    2. $10,522.64
    3. $6,219.33
    4. $11,574.90
  6. What is the IRR for Project B?
    1. 11.2%
    2. 13.9%
    3. 11.6%
    4. 10.9%
  1. What is the discounted payback period of Project A assuming the WACC is 10%?
    1. 4.1 years
    2. 5.5 years
    3. 5.1 years
    4. 4.9 years

Solutions

Expert Solution

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