Peter Pipers Pies (P3) is evaluating four independent investments. The cost of each project is $214,000. The

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Peter Piper’s Pies (P3) is evaluating four independent investments. The cost of each project is $214,000. The internal rates of return (IRRs)

for the projects are IRR1 5 19%, IRR2 5 15%, IRR3 5 18%, and IRR4 5 14%. P3’s investment banker has provided the following WACC table: image text in transcribed

Which project(s) should P3 purchase?

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Peter Pipers Pies (P3) is evaluating four independent investments. The cost of each project is $214,000. The

Question:

Total Amount Raised WACC $1-$520,000 11.0% 520,001 - 745,000 12.5 Over 745,000 15.2

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Cfin4 Plus Coursemate Printed Access Card 2014

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