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 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

Group of answer choices

3.23 years

2.85 years

3.66 years

3.04 years

2.67 years

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