Project B has an upfront cost of $45,000 and expected OCFs (already calculated) of $22,000 year 1, $26,000 year 2, $8,000 year 3 WACC 12%. a. What is the NPV for project B? a. What is the IRR for project B? b. What is the regular payback for B? b. What is the discounted payback for B? c. Which is preferred A or B? c. Why?
Project B has an upfront cost of $45,000 and expected OCFs (already calculated) of $22,000 year 1, $26,000 year 2, $8,000 year 3 WACC 12%. a. What is the NPV for project B? a. What is the IRR for project B? b. What is the regular payback for B? b. What is the discounted payback for B? c. Which is preferred A or B? c. Why?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EB: Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two...
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