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Webroot, a supplier of computer safeguard systems, uses a cost of capital of 7 i percent to evaluate average - risk projects, and it adds
Webroot, a supplier of computer safeguard systems, uses a cost of capital of i percent
to evaluate averagerisk projects, and it adds or subtracts percentage points to evaluate projects
of more or less risk. Currently, two mutually exclusive projects are under consideration. Both
have a cost of $ and will last four years. Project a riskierthanaverage project, will
produce annual end of year cash flows of $ Project B of less than average risk, will
produce cash flows of $ at the end of Years and only.
Project which has average risk, will produce the cash flows provided below.
Which project should Webroot accept? Justify your selection.
Complete the cash flows of both projects:
Calculate the Risk Adjusted Cost of Capital, NPV IRR, and MIRR for each project and provide your recommendation:
Riskadjusted cost of capital for project
Riskadjusted cost of capital for project
Riskadjusted cost of capital for project
NPV
IRR
MIRR
Which project should Webroot accept? Justify your selection.The polynomial inQ has a splitting field GsubC.
The polynomial inQ has a splitting field HsubC.
a What is :
b Decide
c What is :
d Decide
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