Question
- Using the WACC you obtained for the publicly-traded company as discount rate, apply capital budgeting analysis techniques (NPV, IRR, MIRR, PI, Payback, Discounted Payback)
- Using the WACC you obtained for the publicly-traded company as discount rate, apply capital budgeting analysis techniques (NPV, IRR, MIRR, PI, Payback, Discounted Payback) to analyze the new project. - Perform a sensitivity analysis for the effects of key variables (e.g., , cost of capital, unit costs, sales price) on the estimated NPV in order to demonstrate the sensitivity of the model. The Scenario analysis of several variables simultaneously is encouraged, but not required. - Discuss whether the project should be taken and summarize your report. Company i used is Exxon Mobil
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