Geothermal's WACC is 11.7 %. Executive Fruit's WACC is 12.3%. Now Executive Fruit is considering an...

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Geothermal's WACC is 11.7 %. Executive Fruit's WACC is 12.3%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project cash flows at 12.3%? b. What would be a better discount rate for this investment? Note: Enter your answer as a percent rounded to 1 decimal place. a. Should it discount project cash flows at 12.3 %? b. Better discount rate % Geothermal's WACC is 11.7 %. Executive Fruit's WACC is 12.3%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project cash flows at 12.3%? b. What would be a better discount rate for this investment? Note: Enter your answer as a percent rounded to 1 decimal place. a. Should it discount project cash flows at 12.3 %? b. Better discount rate %

Answer rating: 100% (QA)

a No Executive Fruit should not discount project cash flows at 123 as this rate r... View the full answer