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You are considering two projects and can only choose one: the first has an IRR 15%, the other has a IRR 25%. Your WACC is
You are considering two projects and can only choose one: the first has an IRR 15%, the other has a IRR 25%.
Your WACC is 12%.
Which of the following would you select?
The project with an IRR of 25% is probably preferrable; however you should also conduct a DCF analysis. | ||
Neither - both are value destroying. | ||
The project with the 25% IRR. | ||
The project with the 15% IRR. |
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