Question
Geothermals WACC is 10.5%. Executive Fruits WACC is 11.4%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project
Geothermals WACC is 10.5%. Executive Fruits WACC is 11.4%. Now Executive Fruit is considering an investment in geothermal power production.
a. Should it discount project cash flows at 11.4%?
-
Yes
-
No
b. What would be a better discount rate for this investment? (Enter your answer as a percent rounded to 1 decimal place.)
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
