Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon D in order to copy its content into a spreadsheet. Category To T1 T2 T3 - $10,200,412 Investment Net working capital change Operating cash flow Salvage $626.000 $4,775,000 $626,000 $3,651,000 $4,166,000 $372,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project. What is the IRR of the project? % (Round to two decimal places.)
Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon D in order to copy its content into a spreadsheet. Category To T1 T2 T3 - $10,200,412 Investment Net working capital change Operating cash flow Salvage $626.000 $4,775,000 $626,000 $3,651,000 $4,166,000 $372,000 At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project. What is the IRR of the project? % (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Chapter 11, Question 8
Transcribed Image Text:Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line:
Click on the lcon
in order to copy its content into a spreadsheet.
Category
T2
T3
Investment
- $10,200,412
Net working capital change
Operating cash flow
- $626,000
$626,000
$3,651,000
$4,166,000
$4,775,000
Salvage
$372,000
At what adjusted WACCS will the company accept this project? Hint: Find the IRR of the project, and use it as the maximum adjusted WACC for accepting the project.
What is the IRR of the project?
% (Round to two decimal places.)
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