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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