Question: ch.11 question 9 Project X has a nee present value (NPV) of $48.52 thousand and an internal rate of return (IRA) of 30.85% while Project
Project X has a nee present value (NPV) of $48.52 thousand and an internal rate of return (IRA) of 30.85% while Project Y has a net present value (NPV) of $72.19 thousand and an internal rate of return (iR of 25.69%. If these projects are mutually exclusive and the company's WACC is 7 , what should the compary do? Take neither of the projects Take only Project x because it has the higher IRR Take only Project Y because it has the higher NPV Take both of the projects because their NPVs are positive and their IRRs exceed the WACC
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
