A firm with a 12 wacc is evaluating two projects for this, Ask an Expert

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A firm with a 12% 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 -16,000 5,000 5,000 5,000 5,000 5,000

Project B -27,000 8,200 8,200 8,200 8,200 8,200

Calculate payback period, NPV, and IRR for each project. Assuming the projects are independent, which one or ones would you recommend? If the projects are mutually exclusive, which would you recommend?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92778444

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