Reference no: EM132792674

A firm has a WACC of 13.89% and is deciding between two mutually exclusive projects. Project A has an initial investment of $64.03. The additional cash flows for project A are: year 1 = $18.81, year 2 = $36.37, year 3 = $53.05. Project B has an initial investment of $72.28. The cash flows for project B are: year 1 = $52.90, year 2 = $37.85, year 3 = $30.66.

Question 1: Calculate the Following:

1. Payback Period for Project A:
2. Payback Period for Project B:
3. NPV for Project A:
4. NPV for Project B:

Question 2:  Project Z has an initial investment of $65,635.00 . The project is expected to have cash inflows of $22,385.00 at the end of each year for the next 18.0 years. The corporation has a WACC of 13.07%.
Calculate the NPV for project Z.

A firm has a WACC of 11.72% and is deciding between two mutually exclusive projects. Project A has an initial investment of $64.82. The additional cash flows for project A are: year 1 = $17.08, year 2 = $38.21, year 3 = $49.05. Project B has an initial investment of $70.40. The cash flows for project B are: year 1 = $51.46, year 2 = $36.85, year 3 = $36.63.

Question 3: Calculate the Following:

1. Payback Period for Project A:
2. Payback Period for Project B:
3. NPV for Project A:
4. NPV for Project B: