Author Question: Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is ... (Read 14 times)

petersan · **on:** Aug 7, 2023

Question 1

Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows:

Year	Project A	Project B
0	–$130,000	–$130,000
1	52,000	40,000
2	40,000	25,000
3	80,000	93,000
4	50,000	71,000

At what WACC would the two projects have the same NPV?

◦

10.06%

◦

10.73%

◦

11.21%

◦

11.82%

Question 2

Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the project’s discounted payback?

WACC:	10.00%
Year:	0	1	2	3
Cash flows:	–$1,300	$600	$600	$600

◦

2.01 years

◦

2.14 years

◦

2.38 years

◦

2.57 years

3ginamay · **Reply #1 on:** Aug 7, 2023

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 64% of students answer this correctly