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A firm has a WACC of 13.64% and is deciding between two mutually exclusive projects....

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Finance

A firm has a WACC of 13.64% and is deciding between two mutually exclusive projects.
Project A has an initial investment of $62.12. The additional cash flows for Project A are:
Year 1 = $19.26
Year 2 = $37.74
Year 3 = $58.27
Project B has an initial investment of $71.69. The cash flows for Project B are:
Year 1 = $56.39
Year 2 = $37.73
Year 3 = $33.58
Calculate the following:
a. Payback period for Project A
b. Payback period for Project B
c. NPV for Project A
d. NPV for Projecr B

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