Question

In: Finance

Category T0 T1 T2 T3 Investment −​$9,910,109 Net working capital change -$667,000 ​$667,000 Operating cash flow...

Category

T0

T1

T2

T3

Investment

−​$9,910,109

Net working capital change

-$667,000

​$667,000

Operating cash flow

​$3,467,000

​$4,050,000

​$4,708,000

Salvage

​$359,000

a) What is the IRR of the​ project?

b) At what adjusted WACCs will the company accept this​ project?

Solutions

Expert Solution

a) IRR = 11.13%

b)ADJUSTED WACC SHOULD BE LESS THAN 11.13% TO ACCEPT THE PROJECT


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