A firm with a WACC of 13% is evaluating two projects, A and B, for this...

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A firm with a WACC of 13% is evaluating two projects, A and B,for this year’s capital budget. The after-tax cash flows aredepicted as follows: Project A 0 1 2 3 4 5 | | | | | | -6,000 2,2002,200 2,200 2,200 2,200 Project B 0 1 2 3 4 5 | | | | | | -18,0005,800 5,800 5,800 5,800 5,800 Calculate NPV, IRR (Hint: between24.00% and 24.50% for Project A; between 18.00% and 18.50% forProject B), MIRR, payback, and discounted payback for each project.[All answers should be corrected to 2 decimal places.] Assuming thetwo projects are independent, which one(s) would you recommend? Ifthe projects are mutually exclusive, which would you recommend?

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A firm with a WACC of 13% is evaluating two projects, A and B,for this year’s capital budget. The after-tax cash flows aredepicted as follows: Project A 0 1 2 3 4 5 | | | | | | -6,000 2,2002,200 2,200 2,200 2,200 Project B 0 1 2 3 4 5 | | | | | | -18,0005,800 5,800 5,800 5,800 5,800 Calculate NPV, IRR (Hint: between24.00% and 24.50% for Project A; between 18.00% and 18.50% forProject B), MIRR, payback, and discounted payback for each project.[All answers should be corrected to 2 decimal places.] Assuming thetwo projects are independent, which one(s) would you recommend? Ifthe projects are mutually exclusive, which would you recommend?