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NOTE PLEASE ANSWER ALL PARTS OF THE QUESTION P11-15 (similar to) Apply WACC in NPV. Brawn Blenders has the following incremental cash flow for its
NOTE PLEASE ANSWER ALL PARTS OF THE QUESTION
P11-15 (similar to) Apply WACC in NPV. Brawn Blenders has the following incremental cash flow for its new project: T2 T3 Click on the Icon in order to copy its content into a spreadsheet. Category T1 Investment - $4,918,000 Net working capital change - $394,000 Operating cash flow $1,532,000 Salvage $1,532,000 $394,000 $1,532,000 $331,000 Should Brawn accept or reject this project at an adjusted WACC of 9.69%, 11.69%, or 13.69%? Should Brawn accept or reject this project at an adjusted WACC of 9.69%? (Select the best response.) A. The project should be rejected because the NPV is negative. The costs exceed the benefits in today's dollars. O B. The project should be accepted because the NPV is positive. The benefits exceed the costs in today's dollarsStep by Step Solution
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