Question 11.6 Understanding the NPV profile. The bbasics of capital budgeting.

0 1. 3 3 f4 ' average cost of capital (WACC) pct ,5 14%, do the NW and RR am: .4 choose the same project. If the Emmy-Perm 7 swill agree, _=-rnut1_ially exclusive projects. Their cash ows and NPV proles are shown \"inow-s.- NPV [Doilars] __ . i 800 -$'1,0.00 -$1,500 $200 ' $350 $350 $500 $400 $600 _ $600 $750 Project X a 1o 12 1a 1a 1:3- COST or CAPITAL