Calculate the payback period for project b

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A firm has a WACC of 13.96% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.00. The additional cash flows for project A are: year 1 = $18.52, year 2 = $37.06, year 3 = $54.68. Project B has an initial investment of $70.53. The cash flows for project B are: year 1 = $57.66, year 2 = $49.97, year 3 = $26.34.

Problem 1: Calculate the Following:

a) Payback Period for Project A:
b) Payback Period for Project B:
c) NPV for Project A:
d) NPV for Project B:
e) WACC for the Firm

Reference no: EM132806623

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