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Project 1 and Project 2 have the cash-flows given in the table below. WACC = 6% Project Period project 1 project 2 0 -$50.00 -$75.00
Project 1 and Project 2 have the cash-flows given in the table below.
| WACC = | 6% | ||
| Project | |||
| Period | project 1 | project 2 | |
| 0 | -$50.00 | -$75.00 | |
| 1 | $10.00 | $10.00 | |
| 2 | $10.00 | $18.00 | |
| 3 | $20.00 | $20.00 | |
| 4 | $50.00 | $22.00 | |
| 5 | $24.00 | ||
| 6 | $26.00 | ||
In the NPV Profile Graph, at what WACC do the two projects have the same NPV?
(hint:what's the WACC where the two lines cross?)
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Airline Finance
Authors: Peter S. Morrell
3rd Edition
0815387520, 9780815387527
