Q) A firm has a WACC of 9.60% and is deciding between two mutually exclusive...
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Q) A firm has a WACC of 9.60% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.12. The additional cash flows for project A are: year 1 = $19.64, year 2 = $35.94, year 3 = $43.15. Project B has an initial investment of $74.74. The cash flows for project B are: year 1 = $57.52, year 2 = $47.69, year 3 = $31.12. Calculate the Following:
-Payback Period for Project A:
-Payback Period for Project B:
-NPV for Project A:
-NPV for Project B:
Q2) Project Z has an initial investment of $62,309.00 . The project is expected to have cash inflows of $20,282.00 at the end of each year for the next 11.0 years. The corporation has a WACC of 12.35%. Calculate the NPV for project Z.
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