A firm has a wacc of 13 and is deciding between two


A firm has a WACC of 13% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62. The additional cash flows for project A are: year 1 = $18, year 2 = $37, year 3 = $51. Project B has an initial investment of $73.The cash flows for project B are: year 1 = $57, year 2 = $42, year 3 = $21. Calculate the payback and NPV for each project.

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Financial Management: A firm has a wacc of 13 and is deciding between two
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