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A company with a WACC of 12% is evaluating two projects with equal risk for this year's capital budget. The after-tax cash flows, including...

A company with a WACC of 12% is evaluating two projects with equal risk for this year's capital budget. The after-tax cash flows, including depreciation, are as follows:


b. Calculate the crossover rate

c. At what WACC would there be no conflict

d. Assuming the projects are independent, which one(s) would you recommend?

e. Assuming the project are mutually exclusive, which would you recommend?

f. The projects have the same cash flow timing pattern. So why is there a conflict?


4) Calculate the discounted payback for project M from question above.

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