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How do calculate the npv for project a

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Reference no: EM132797403

A firm has a WACC of 14.36% and is deciding between two mutually exclusive projects. Project A has an initial investment of $62.80. The additional cash flows for project A are: year 1 = $15.90, year 2 = $36.07, year 3 = $51.35. Project B has an initial investment of $71.72. The cash flows for project B are: year 1 = $58.72, year 2 = $46.60, year 3 = $39.68.

Problem 1: Calculate the Following:

a) Payback Period for Project A:
b) Payback Period for Project B:
c) NPV for Project A:
d) NPV for Project B:

Reference no: EM132797403

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