Question
0 1 2 3 4 Project 1 -10,000 1200 4000 5000 2500 Project 2 -11000 1400 5000 4500 1500 Now consider the 2 projects, the
0 1 2 3 4
Project 1 -10,000 1200 4000 5000 2500
Project 2 -11000 1400 5000 4500 1500
Now consider the 2 projects, the cash flows of which are summarized below. The company's WACC is 8%, but Project 2's Risk Adjusted WACC is 6%. The firm's investment budget is $25000. In which projects should the firm invest?
Group of answer choices
Both
Neither
Project 2
Project 1
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
