Question: Problem 5 (six points): Calculate the payback periods for Project A and B Time 0 5 100 Project A 215 30 35 40 105 Project
Problem 5 (six points): Calculate the payback periods for Project A and B Time 0 5 100 Project A 215 30 35 40 105 Project B 175 60 50 50 40 40 Problem 6 (eight points): Calculate the IRR for each of Project A and B from PROBLEM 5 above (cash flows shown in problem 5). (2 pts for each IRR). IRR-A IRR-B For the IRRs of the INDEPENDENT Project A and Project B above, if the WACC is 8%, or 10%, would you do the project? (Please provide two (2) yes or no answers for both Project A and Project B). (4 points total). Proj A: Yes/No? Proj B: Yes/No? 8% 10%
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