Deciding between two mutually exclusive projects

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A firm has a WACC of 10.50% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.58. The additional cash flows for project A are: year 1 = $19.92, year 2 = $37.52, year 3 = $50.93. Project B has an initial investment of $71.57. The cash flows for project B are: year 1 = $58.06, year 2 = $38.54, year 3 = $38.53. 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:

Reference no: EM132505562

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