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Apply WACC in NPV. Brawn Blenders has the following incremental cash flow for its new project: Category Investment Net working capital change Operating cash flow
Apply WACC in NPV. Brawn Blenders has the following incremental cash flow for its new project: Category Investment Net working capital change Operating cash flow Salvage To $3,820,000 $303,000 T1 T2 T3 $303,000 $1,387,000 $231,000 $1,387,000 $1,387,000 Should Brawn accept or reject this project at an adjusted WACC of 11.32%, 13.32%, or 15.32%? Should Brawn accept or reject this project at an adjusted WACC of 11.32%? (Select the best response.) 0 A. The project should be rejected because the NPV is negative. The costs exceed the benefits in today's dollars O B. The project should be accepted because the NPV is positive. The benefits exceed the costs in today's dollars Should Brawn accept or reject this project at an adjusted WACC of 13.32%? (Select the best response.) 0 A. The project should be accepted because the NPV is positive. The benefits exceed the costs in today's dollars O B. The project should be rejected because the NPV is negative. The costs exceed the benefits in today's dollars Should Brawn accept or reject this project at an adjusted WACC of 15.32%? (Select the best response.) 0 A. The project should be accepted because the NPV is positive. The benefits exceed the costs in today's dollars B. The project should be rejected because the NPV is negative. The costs exceed the benefits in today's dollars Click to select your
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