Question
The company you selected (Starbucks) is considering investing in a project that will generate the following cash flows: CF0: -5000000 CF1: 1000000 CF2: 1000000 CF3:
The company you selected (Starbucks) is considering investing in a project that will generate the following cash flows: CF0: -5000000 CF1: 1000000 CF2: 1000000 CF3: 1000000 CF4: 1000000 CF5: 2000000 Step One: Using the stock , go to www.gurufocus.com (Links to an external site.) (Links to an external site.) and type in the symbol for that stock. The screen should look like this. Notice the area I circledthat tells you the WACC of the company. Type that number down in your post. disscussion 7.jpg Step Two: Using the cash flows above, along with the WACC, calculate the Net Present Value (NPV) of the project. Post a photo of your calculator showing your results. Step Three: Should your company invest in this project? Why or why not?
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