Question: Cash Flows ($ mln) CF3 4.75 Projects Alpha Beta Gamma Delta CF -12.55 -8.25 -6.25 -24.95 CF1 4.75 3.85 0 CF2 4.75 4.75 0 0

Cash Flows ($ mln) CF3 4.75 Projects Alpha Beta Gamma Delta CF -12.55 -8.25 -6.25 -24.95 CF1 4.75 3.85 0 CF2 4.75 4.75 0 0 4.95 CF4 4.75 0 12.75 43.95 0 0 0 Popcorn Corp. is considering the above four mutually exclusive projects. The firm has a marginal tax rate of 25%, an average tax rate of 17,5% and a WACC of 7.25% Project Gamma has an internal rate of return of % and we should, therefore project Gamma

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