Given that Dutch Foods Co. has a policy of risk adjusting their WACC of 11% by plus
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Question:
Given that Dutch Foods Co. has a policy of risk adjusting their WACC of 11% by plus or minus 2% for above and below average risk projects respectively, what is the NPV for independent project C?
Project: | A | B | C |
Risk | Average | Below | Above |
CF0 | -10 | -20 | -25 |
CF1 | 5 | 8 | 5 |
CF2 | 7 | 8 | 10 |
CF3 | 4 | 8 | 10 |
CF4 | 3 | 5 | 15 |
NPV |
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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