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A project offers an internal return of return 13%. As the divisions CFO, you need to make a decision whether to accept the project or
A project offers an internal return of return 13%. As the divisions CFO, you need to make a decision whether to accept the project or not. Which statement is correct if the company's WACC is 12% and the division's cost of capital is 15%?
Project NPV is negative but it should be accepted | ||
Project NPV is negative; it should be rejected | ||
Project NPV is positive; it should be accepted | ||
Project NPV is positive but it should be rejected |
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