Capital Budgeting Criteria: Example Problem
A firm with a 14% WACC is evaluating two projects for this year's capital budget. After- tax cash flows, including depreciation, are as follows: 0 1 2 3 4 5 Project A -6,000 2,000 2,000 2,000 2,000 2,000 Project B -18,000 5,600 5