Question
The NPV on a potential capital investment project your firm is evaluating is $1.089 million. The cost of capital used to discount the net incremental
The NPV on a potential capital investment project your firm is evaluating is $1.089 million. The cost of capital used to discount the net incremental cash flows is 12.5%. What do you know about IRR?
a. Without knowing the cash flows, nothing specific can be said about IRR.
b. IRR > WACC
c. IRR < WACC
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
