Question: 0 1 5 2 + 5,600 3 + 5,600 4 + 5,600 -18,000 5,600 5,600 A firm with a 14% WACC is evaluating one project


0 1 5 2 + 5,600 3 + 5,600 4 + 5,600 -18,000 5,600 5,600 A firm with a 14% WACC is evaluating one project for this year's capital budget. After-tax cash flows, including depreciation are attached. What is the regular payback for this project? (The cash flows of this project are shown in the attachment.) A) 3.21 Years. B) 3.13 Years. C) 3.35 Years. D) 3.46 Years. E) 3.05 Years. Based on the three cases shown below, what is the expected net present value? Scenario Probability Best case Projected NPV $25,000 $10,000 -$15,000 30% 50% 20% Base case Worst case A) $8,500 B) $10,000 C) $11,000 D) $9,000 E) $9,500
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