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San Dimas Security Inc. is considering a project that has the following cash flow and projects WACC data. Do they have to accept it or
San Dimas Security Inc. is considering a project that has the following cash flow and projects WACC data. Do they have to accept it or reject it and why?
Projects WACC: 19%
Year 0 1 2 3
Cashflows -$1000 $700 $500 $500
A. | Accept since NPV is $150.25 | |
B. | Accept since NPV is $238.03 | |
C. | Accept since IRR is 12% | |
D. | Accept since IRR is 15% |
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