I am considering two investment options that are not mutually exclusive. (This means that both of these
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Question:
I am considering two investment options that are not mutually exclusive. (This means that both of these options can be funded, one of them can be funded, or neither of them might be funded.)
If my WACC is 5%, one investment option has a net present value of $20, and the other has a net present value of $50.
If my WACC increases to 7%, the net present values then become $0 and $30.
What should I do if my WACC is 5% now?
What should I do if my WACC doubles to 10%? How does this change my decision?
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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