Question
Geothermals WACC is 10.6%. Executive Fruits WACC is 11.5%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project
| Geothermals WACC is 10.6%. Executive Fruits WACC is 11.5%. Now Executive Fruit is considering an investment in geothermal power production. |
| a. | Should it discount project cash flows at 11.5%? | ||||
|
| b. | What would be a better discount rate for this investment? (Enter your answer as a percent rounded to 1 decimal place.) |
| Better discount rate | % |
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School Finance Elections
Authors: Don E. Lifto, Bradford J. Senden, Daniel A. Domenech
2nd Edition
1607091488, 978-1607091486
