1. The Avengers have been presented with two different plans (THOR and HULK). The projected cash flows are shown Table 1

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answerhappygod
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1. The Avengers have been presented with two different plans (THOR and HULK). The projected cash flows are shown Table 1

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1. The Avengers have been presented with two different plans
(THOR and HULK). The projected cash flows are shown Table 1 below.
The company’s Weighted Average Cost of Capital (WACC) is 6 % per
annum.
a) Calculate the Net Present Value (NPV) of THOR and
HULK.
b) Based on your answer in part a), assuming that both
projects are mutually exclusive, explain briefly which plan the
Avengers should pick.
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