A firm with a 13% WACC is evaluating two projects for this year\'s capital budge
ID: 2685245 • Letter: A
Question
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: Project A: $-9000 ($3,000 $3,000 $3,000 $3,000 $3,000) Project B: $-27,000 ( $8,400 $8,400 $8,400 $8,400 $8,400) 1. Calculate NPV for each project. Round your answers to the nearest cent. Project A = NPV(Rate,CF1...CF5) +CF0 So NPVa = NPV(13%,3000,3000,3000,3000,3000) - 9000 = $1,552 Project B=NPV(13%,8400,8400,8400,8400,8400) - 27000 = $2,545 THESE ANSWERS ARE WRONG..... PLEASE HELP!!Explanation / Answer
The process is correct.I am also getting the same answers. please check the question once again.
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