Project B has an upfront cost of $45,000 and expected OCFs (already calculated) of $22,000 year 1, $26,000year 2, $8,000 year 3WACC 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?

Answered: Project B has an upfront cost of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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