Note: For Problems 16 through 21 use the data provided in Table 1 Table 1:...

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Accounting

Note: For Problems 16 through 21 use the data provided in Table 1

Table 1: Cash Flow Summary

Year Project A Project B

0 -30000 -30000

1 15000 12500

2 15000 10000

3 10000 15000

4 10000 15000

16. If Company XYZ has a WACC of 7% and the two projects are independent, which project would you accept based upon NPV rules?

17. If Company XYZ has a WACC of 22% and the two projects are mutually exclusive which project would you accept based upon NPV rules?

18. What is the Internal Rate of Return for Project B?

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