Question: A firm with a 8% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate payback for the project that

 A firm with a 8% WACC is evaluating two mutually exclusive

A firm with a 8% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate payback for the project that maximizes shareholder value. t= 0 1 2 3 4 5 Project M -75 20 20 20 25 b5 Project N -48 18 18 18 12 10 3.6 years 2.9 years 3.8 years 2.7 years 2.5 years

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