Question

Your division is considering two projects. Its WACC is 10% and the projects' after-tax cash flow(in millions of dollars) would be as follows: 0 1 2 3 4Project A - $30 $5 $10 $15 $20Project B - $30 $20 $10 $8 $6(a) Calculate the projects' NPVs, IRRs, regular paybacks, and discounted paybacks.(b) If the two projects are independent, which project(s) should be chosen ?

Answer 1

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.