Question

A project has annual cash flows of $8,000 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 11.77%. If the firm's WACC is 9%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.

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Midwest Water Works estimates that its WACC is 10.43%. The company is considering the following capital budgeting projects. Assume that each of these projects is just as risky as the firm's existing assets and that the firm may accept all the projects or only some of them. Which set of projects should be accepted? Project Size Rate of Return A $1 million      12.0% -Select-AcceptDon't acceptItem 1 B 2 million 11.5 -Select-AcceptDon't acceptItem 2 C 2 million 11.2 -Select-AcceptDon't acceptItem 3 D 2 million 11.0 -Select-AcceptDon't acceptItem 4 E 1 million 10.7 -Select-AcceptDon't acceptItem 5 F 1 million 10.3 -Select-AcceptDon't acceptItem 6 G 1 million 10.2 -Select-AcceptDon't acceptItem 7

Answer 1