Question: San Dimas Security Inc. is considering a project that has the following cash flow and projects WACC data. Do they have to accept it or
San Dimas Security Inc. is considering a project that has the following cash flow and projects WACC data. Do they have to accept it or reject it and why?
Projects WACC: 19%
Year 0 1 2 3
Cashflows -$1000 $700 $500 $500
| A. | Accept since NPV is $150.25 | |
| B. | Accept since NPV is $238.03 | |
| C. | Accept since IRR is 12% | |
| D. | Accept since IRR is 15% |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
