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After Christine became CEO, she had so many ideas that have worked to make the company very large and profitable. One more successful project may
After Christine became CEO, she had so many ideas that have worked to make the company very large and profitable. One more successful project may make them attractive enough to be purchased by a large publicly traded competitor. Due to its uncertainty, the CFO assigns a Risk Adjusted WACC of 16% to the current project under consideration with the following initial investments(-) and cash flows(+) in the CFFA summary: Initial investment in Net Working Capital of $100,000. Initial investment in Fixed Assets of $1.900.000 Year 1: $400,000, Year 2: $500,000. Yeak 3: $600,000, Year 4: $700.000, Year 5: $1,500,000 What are the NPV and IRR of this project? $78,743.03 and 20.15% $153.965,63 and 18.65% $201.576.93 and 19.41% DO $249.188.23 and 20.15% $1201254.33 1934
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