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Firm WACC is 15%. Division X's WACC is 9%. Division Y's WACC is 13%. A new project at Division Y with 11% IRR should be
Firm WACC is 15%.
Division X's WACC is 9%.
Division Y's WACC is 13%.
A new project at Division Y with 11% IRR should be REJECTED.
T/F
Firm WACC is 15%.
Division X's WACC is 9%.
Division Y's WACC is 13%.
A new project at Division X with 8% IRR should be ACCEPTED.
T/F
Firm WACC is 15%.
Division X's WACC is 9%.
Division Y's WACC is 13%.
ANY project with 16% IRR should be ACCEPTED
T/F
Firm WACC is 15%.
Division X's WACC is 9%.
Division Y's WACC is 13%.
A new project at Division X with 11% IRR should be ACCEPTED.
T/F
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