Question: A firm with a 10% WACC is evaluating two projects for this years capital budget. After-tax cash flows, including depreciation, are as follows: Calculate: Discounted

A firm with a 10% WACC is evaluating two projects for this years capital budget. After-tax cash flows, including depreciation, are as follows:

A firm with a 10% WACC is evaluating two projects for this

Calculate:

Discounted Payback: Project A Answer years Project B Answer years

0 4 5 N+ 3 + $55 $50 Project A -$400 Project B - $600 $55 $300 $55 $300 $225 $50 $225 $49

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