A firm with a 13 wacc is evaluating two projects for this

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A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:
0 1 2 3 4 5
Project A -$3,000 $1,000 $1,000 $1,000 $1,000 $1,000
Project B -$9,000 $2,800 $2,800 $2,800 $2,800 $2,800

a.Calculate NPV for each project. Round your answers to the nearest cent.

  • Project A $
  • Project B $

b.Calculate IRR for each project. Round your answers to two decimal places.

  • Project A %
  • Project B %

c.Calculate MIRR for each project. Round your answers to two decimal places.

  • Project A %
  • Project B %

d.Calculate payback for each project. Round your answers to two decimal places.

  • Project A years
  • Project B years

e.Calculate discounted payback for each project. Round your answers to two decimal places.

  • Project A years
  • Project B years

Reference no: EM13596699

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