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 2
A firm has two projects: Project A and Project B.
Here are the estimated cash flows from each of the projects:
Yr 1 Yr 2 Yr 3 Yr,4 Yr 5
Project A 300300400100100
Project B 30030040010001000
The WACC is 10%, and the initial outlay is $1000.
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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