Apply WACC in IRR Leeward Sailboats is reviewing the following new boat line: Click on the...

 

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Apply WACC in IRR Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category Investment Net working capital change Operating cash flow Salvage To -$9,993,325 - $624,000 $3,230,000 $3,821,000 T3 $624,000 $4,621,000 $679,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project. Apply WACC in IRR Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category Investment Net working capital change Operating cash flow Salvage To -$9,993,325 - $624,000 $3,230,000 $3,821,000 T3 $624,000 $4,621,000 $679,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project.

Answer rating: 100% (QA)

Here are the steps to apply WACC to calculate the IRR for this project from Leeward Sailboats 1 Co... View the full answer