Question: We are evaluating a project for the company ABC which has the WACC of 15%. We calculated the NPV of this project using WACC as

We are evaluating a project for the company ABC which has the WACC of 15%. We calculated the NPV of this project using WACC as the discount rate and the NPV is equal to 0.

This project's risk is lower than the company's current operations. Based on the information given,

We cannot decide. We need more information.

We should accept the project

We are indifferent toward this project. We can accept or reject it.

We should reject the project.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!