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Ch 11: Assignment. The Basics of Capital Budgeting Blue Lama Mining Company is evaluating a proposed il budgeting project project Syma that will require an
Ch 11: Assignment. The Basics of Capital Budgeting Blue Lama Mining Company is evaluating a proposed il budgeting project project Syma that will require an initial investment of $850,000 Blue Lam Ming Company has been basing capital budgeting decations on projects NPV lowever, its name CFO wants start using the IRR method for contal budgeting decisions The CFO says that the IRR is a better method because turns in percentage forme eader to understand and compare to required returns to Llama Mining Company WACC is , and project Sigma has the same risk as the firm's werage protect The troject is expected to generate the following notras flows: Year Cash Flow 3275.000 YR 1 $400,000 Year 2 Vear a 5450,000 $425,000 Yen 4 which the following is the calculation of electromat IRRT 28.1998 0265 This is an independent project, the IRR method datu bat at the roletcost of capital were to increase how wout attect the The IRR
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