Question: ANSWER THE REQUIREMENTS BELOW Problem 2 A rm with 14% WACC is evaluating two projects for this year capital budget. After tax cash flows. including

ANSWER THE REQUIREMENTS BELOW

ANSWER THE REQUIREMENTS BELOW Problem 2 A rm with 14% WACC is

Problem 2 A rm with 14% WACC is evaluating two projects for this year capital budget. After tax cash flows. including depreciation. are as follows: 0 1 2 3 4 5| IIIII Project A -6.000 2.000 2.000 2,000 2.000 2.000 Project 8 -1 8.000 5.600 5.600 5.600 5.600 5.600 30. What is the net present value of each project? (Round present value factor to 4 decimal places; Input your answer a. g. A850; 31,450) 31. What Is the IRR of project A? (Input your answer e. g. 15.25%; Round answer to 2 decimal places) 32. Assuming the projects are mutually Inclusive, which onqu would you recommend? (Input your answer a. g. A)

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