Question
Geothermal's WACC is 12.3%. Executive Fruit's WACC is 13.2%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project
Geothermal's WACC is 12.3%. Executive Fruit's WACC is 13.2%. Now Executive Fruit is considering an investment in geothermal power production.
a. Should it discount project cash flows at 13.2%?Yes or No
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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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
