Transcribed Image Text
Harry Davis Inc is considering the following projects:Year Project 1 Project 2 Project 3 Project 40 $(50,000,000) $(25,000,000) $(25,000,000) $(50,000,000)1 $15,000,000 $10,000,000 $5,000,000 $22,000,0002 $15,000,000 $15,000,000 $10,000,000 $17,000,0003 $15,000,000 $17,000,000 $5,000,000 $13,500,0004 $15,000,000 $25,000,000 $11,000,000 $10,000,0005 $15,000,000 $(35,000,000) $10,000,000 $8,000,000The company has a weighted average cost of capital of 11.20%(this is the firm’s required return).Calculate the Net Present Value (NPV) of each project.Calculate the Internal Rate of Return (IRR) of eachproject.Calculate the Payback Period for each project. (Harry Davisrequires all new projects have a payback period of 4 years orless)If these four projects are independent, which one(s) should beaccepted? Why?If these four projects are mutually exclusive, which one(s)should be accepted? Why?