Question: A firm with a 9% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate the discounted payback for the

A firm with a 9% WACC is evaluating two mutually exclusive

A firm with a 9% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate the discounted payback for the project that maximizes shareholder value. t = 0 1 2 3 4 Project M -750 400 300 200 100 Project W-750 200 250 250 350 3.23 years 2.67 years 2.85 years 3.04 years 3.66 years

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