Question: If you cannot answer all questions the please do not answer at all, thanks! Use the following cash flow stream to answer questions 6 through

If you cannot answer all questions the please do not answer at all, thanks!

If you cannot answer all questions the please do not answer at

Use the following cash flow stream to answer questions 6 through 10: Time 0 Cash Flow 24,000 8,000 12,000 12,000 3,000 Problem 6: Calculate the NPV of the project above assuming a risk-adjusted WACC of 16%. Do you accept or reject the project based on NPV? Problem 7: Calculate the NPV of the project above assuming a risk-adjusted WACC of 14%. Do you accept or reject the project based on NPV? Problem 8: Calculate the IRR and the MIRR of the project above. Assuming that the risk-adjusted WACC were 16%, would you accept or reject the project based on IRR/MIRR? Problem 9: The payback period for the project above is? Problem 10: Using a discount rate of 16%, what is the discounted payback period for the project above? hich of the following two statements is correct? S1: The risk-adjusted WACC is designed to capture the risk of the project's cash flows S2: A firm should accept a project if the IRR exceeds the risk-adjusted WACC a) b) c) d) S1 is correct but S2 is false S2 is correct but S1 is false Both statements are correct Both statements are false

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