Question: Evaluate the cash flows for the following projects, assuming a WACC of 14%. Cash Flow Project A1 Project B1 Year 0 -$30,000 -$70,000 Year 1
Evaluate the cash flows for the following projects, assuming a WACC of 14%.
Cash Flow | Project A1 | Project B1 |
Year 0 | -$30,000 | -$70,000 |
Year 1 | $15,000 | $20,000 |
Year 2 | $25,000 | $30,000 |
Year 3 | $20,000 | $25,000 |
Year 4 | $15,000 | $15,000 |
Year 5 | $10,000 |
- Calculate the NPV of each project.
- Determine the payback period for each project.
- Find the IRR for each project.
- Compare the projects based on NPV and payback period.
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