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Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into
Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category To T Investment - $8,994,560 Net working capital change Operating cash flow - $486,000 $2,872,000 Salvage T2 T3 $486,000 $3,515,000 $4,111,000 $653,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project. What is the IRR of the project? % (Round to two decimal places.) At what adjusted WACCS will the company accept this project? (Select the best response.) A. The company will accept this project if the adjusted WACC is no more than the IRR calculated above. OB. The company will accept this project if the adjusted WACC is greater than the IRR calculated above.
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