A firm with a 14% 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 -$30,000 $10,000 $10,000 $10,000...

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A firm with a 14% 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

-$30,000

$10,000

$10,000

$10,000

$10,000

$10,000

Project B

-$90,000

$28,000

$28,000

$28,000

$28,000

$28,000




a. Calculate NPV for each project. Round your answers to the nearest cent.

Project A $


Project B $



b. Calculate IRR for each project. Round your answers to two decimal places.

Project A %

Project B %



c. Calculate MIRR for each project. Round your answers to two decimal places.

Project A %

Project B %



d. Calculate payback for each project. Round your answers to two decimal places.

Project A years

Project B years



e. Calculate discounted payback for each project. Round your answers to two decimal places.

Project A years

Project B years



Answered Same DayDec 31, 2021

Answer To: A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash...

David answered on Dec 31 2021
120 Votes
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