A firm with a 14 wacc is estimating two projects for this, Ask an Expert

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problem: A firm with a 14% WACC is estimating 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	-$6,000	$2,000	$2,000	$2,000	$2,000	$2,000
Project B	-$18,000	$5,600	$5,600	$5,600	$5,600	$5,600

[A] Compute NPV, IRR, MIRR, payback, & discounted payback for each project.
[B] Suppose the projects are independent, which one or ones would you recommend?
[C] If the projects are mutually exclusive, determine which would you recommend?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M918621

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