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26 Banyan Computers has a WACC of 1.25% and is considering a project with the following cash flows: Year 0 Year 1 Year 2 Year
26 Banyan Computers has a WACC of 1.25% and is considering a project with the following cash flows: Year 0 Year 1 Year 2 Year 3 Year 4 - $1.75 billion $75 million $95 million $550 million $1.12 billion Which of the following statements, about the project, is correct? It should be rejected because the IRR is negative. It should be accepted because the IRR is positive. It should be accepted because the sum of the future cash flows is greater than the initial outflow. It should be accepted because the IRR of 1.46% is higher than the WACC. It should be rejected because the IRR of 1.46% is too low
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