Question: A firm with a 10% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: o 1 2 3


A firm with a 10% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: o 1 2 3 4 5 3,000 Project A 2,500 -$6,000 4,000 2,000 4,500 5,600 Project B 7,000 -$18,000 7,200 5,600 8,000 Question #20: What is the regular payback period (NOT DISCOUNTED) for Project A? 3.25 years 2.75 years 2.40 years 3.00 years A firm with a 10% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: Time 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A - 6,000 2,000 3,000 2,500 4,000 4,500 Project B -18,000 5,600 5,600 7,000 7,200 8,000 Question #21: What is the regular payback period (NOT DISCOUNTED) for Project B? 3.97 years 4.00 years 2.50 years 2.97 years
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