Question: Please help me answer this two part question: A.) You are evaluating a project with the following cash flows: initial investment is $-8, and the
Please help me answer this two part question:
A.) You are evaluating a project with the following cash flows: initial investment is $-8, and the expected cash flows for years 1 - 3 are $15, $12 and $6 (all cash flows are in millions of dollars). What is this projects NPV? The company's WACC is 11%.
Express your answer in millions of dollars, rounded to 2 decimals and without the dollar sign. So, if your answer is 23.5678, just enter 23.57.
B.) You are evaluating a project with an initial investment of $12.8 million dollars, and expected cash flows of $7 million dollars each for years 1-3. What is the project's simple payback? The corporate WACC is 10%.
Express your answer in years, rounded to 2 decimals. So, if your answer is 2.7654, then just enter 2.77.
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