Question: Question at position 2 A firm has two projects: Project A and Project B . Here are the estimated cash flows from each of the
Question at position
A firm has two projects: Project A and Project B
Here are the estimated cash flows from each of the projects:
Yr Yr Yr Yr Yr
Project A
Project B
The WACC is and the initial outlay is $
Calculate the following for each project:
NPV
Internal Rate of Return IRR
Profitability Index PI
Payback Period PB
Explain which project is better using each measure.
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