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