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A firm is considering two projects, A and B. Each project will last for 4 years. The projected cash flows for each project are shown
A firm is considering two projects, A and B. Each project will last for 4 years. The projected cash flows for each project are shown below:
Year | 0 | 1 | 2 | 3 | 4 |
Project A | -20 | 8 | 7 | 6 | 4 |
Project B | -30 | 10 | 9 | 10 | 7 |
If the projects are contingent, for what range of WACC would you accept BOTH projects?
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