Question: A firm with an 11% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate the discounted payback for the

A firm with an 11% WACC is evaluating two mutually exclusive

A firm with an 11% 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 X -700 400 250 250 200 Project Y -700 100 250 350 450 3.40 years 2.88 years 2.75 years 3.08 years 3.24 years

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