Spencerland Co. is facing a capital budgeting decision, it has two projects to decide upon. Each one
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Question:
Spencerland Co. is facing a capital budgeting decision, it has two projects to decide upon. Each one would cost $25,000,000 today. Spencerland Co.’s WACC is 10%. Cash flows for each are below (in $millions);
Year Project C Project D
1 $5m $20m
2 $10m $10m
3 $15m $8m
4 $20m $6m
Find the
NPV
IRR,
Payback period of project
Find the WACC
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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