Question: Problem 11-3 Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the

Problem 11-3

Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the projects discounted payback? Round your answer to two decimal places.

years

Problem 11-13 net present value

A firm with a WACC of 10% is considering the following mutually exclusive projects:

0

1

2

3

4

5

Project A -$450

$75

$75

$75

$225

$225

Project B -$550

$200

$200

$55

$55

$55

Which project which you recommend?why?

Problem 11-4 net present value

Project S costs $20,000 and its expected cash flows would be $5,500 per year for 5 years. Mutually exclusive Project L costs $39,000 and its expected cash flows would be $12,100 per year for 5 year. If both project have a WCC of 12%, which project would you recommend? Why?

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