Question
Geothermals WACC is 11.6%. Executive Fruits WACC is 12.5%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project
Geothermals WACC is 11.6%. Executive Fruits WACC is 12.5%. Now Executive Fruit is considering an investment in geothermal power production.
a. Should it discount project cash flows at 12.5%?
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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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
