- Calculate the NPV for each project and determine which project should be accepted.
|Project A||Project B||Project C||Project D|
|Inflow year 1||53,000.00||51,000.00||25,000.00||45,000.00|
|Inflow year 2||50,000.00||47,000.00||55,000.00||50,000.00|
|Inflow year 3||48,000.00||41,000.00||15,000.00||30,000.00|
|Inflow year 4||30,000.00||52,000.00||21,000.00||62,000.00|
|Inflow year 5||35,000.00||40,000.00||35,000.00||68,000.00|
- Your company is considering three independent projects. Given the following cash flow information, calculate the payback period for each. If your company requires a three-year payback before an investment can be accepted, which project(s) would be accepted?
|Project D||Project E||Project F|
|Inflow year 1||53,000.00||51,000.00||25,000.00|
|Inflow year 2||50,000.00||87,000.00||55,000.00|
|Inflow year 3||48,000.00||41,000.00||21,000.00|
|Inflow year 4||30,000.00||52,000.00||9,000.00|
|Inflow year 5||24,000.00||40,000.00||35,000.00|
- Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.
|Component||Balance Sheet Value||Market Value||Cost of Capital|
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