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5. Uederstanding the IRR and NBV capieal budoetiag deosions. Concider the case of Cute Cama Woodoratt Cempany: steggestions and observabons: suggestions and observations: Given the

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5. Uederstanding the IRR and NBV capieal budoetiag deosions. Concider the case of Cute Cama Woodoratt Cempany: steggestions and observabons: suggestions and observations: Given the data and hints, Project Omicion's initial investment is , and its NPV is Crounded to the nearest whole dollar). A project's IRR will If the project's cash inflows increase, and everything else is unalfected. The CFO has asked you to compute Project Omicron's initial investment using the information currently avaliste to you, He has offered the folowing suggestions and observations: Given the data and hints, Project Omicron's initial investment is , and its NPV is (rounded to the nearest whole dollar). A project's IRR will if the project's cosh inflows increase, and everything else is unaffected. The CFO has asked you to compute Project Omicron's inithil investment using the informabon currently avalable to you, He has offered the folowing suggestions and observations: - A project's IRR represents the retum the project would generate when its NPV is zero of the deccounted value of its cach willows equais the discounted value of its cash outflows - when the cash flows are discounted using the project's tiRR. - The level of risk exhibited by Project Omicron is the same as that exhibited by the company's average project, which means that Pioject Omicron's net cash flows can be discounted using Cute Camel's 9% WACC Given the data and cron's initial investment is , and its NPV is Crounded to the nearest whok dollar). A project's IRR will if the project's cash inflows increase, and everything else is unaffected

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