Capital Budget: ABC company is studying two projects; A and B. The company has a budget of $1,000,000. The expected cash

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Capital Budget Abc Company Is Studying Two Projects A And B The Company Has A Budget Of 1 000 000 The Expected Cash 1 (40.05 KiB) Viewed 62 times

Capital Budget: ABC company is studying two projects; A and B. The company has a budget of $1,000,000. The expected cash flow for each project are as follow: Periods A B Year 1 300,000 500,000 Year 2 300,000 400,000 Year 3 300,000 300,000 Year 4 300,000 250,000 Year 5 300,000 50,000 Total expected cash flows 1,500,000 1,500,000 The WACC of this company is 9%. Required: Which of these two projects is better for the company based on the payback period, NPV, and IRR.