Finance Assignment | Professional Writing
May 20th, 2020
Assume a new project requires an initial investment of $10 million dollars, with ensuing cash flows of $2, $4 and $5 million in years 1, 2 and 3. Assuming the company’s WACC is 10%, which of the following statements is true?
Don't use plagiarized sources. Get Your Assignment on
Finance Assignment | Professional Writing
Just from $13/Page
Group of answer choices
A. The firm should reject the project, as the IRR is lower than the WACC.
B.The firm should accept the project, as the IRR is higher than the WACC.
CThe firm should accept the project, as the NPV is positive.
D.The firm should accept the project, as the NPV is negative.
E. None of these statements are true.
Get Finance homework help today