Question
A firm has a WACC of 10% until it has raised $100 million.Beyond that the WACC is 12%.The firm has the following projects and associated
A firm has a WACC of 10% until it has raised $100 million.Beyond that the WACC is 12%.The firm has the following projects and associated costs:
Project A has a cost of $50 million and an IRR of 14%; project B has a cost of $70 million and an IRR of 16%; and project C has a cost of $35 million and an IRR of 6%.
What is the Optimal Capital Budget?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
