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Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: T2 T3 Click on the Icon in order to copy its content
Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: T2 T3 Click on the Icon in order to copy its content into a spreadsheet. Category T1 Investment - $8,377,265 Net working capital change - $652,000 Operating cash flow $2,651,000 Salvage $3,228,000 $652,000 $4,090,000 $596,000 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? 1% (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. B. The company will accept this project if the adjusted WACC is greater than the IRR calculated above
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