Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category Investment Net working capital change Operating cash flow Salvage To - $8,337,258 -$589,000 $2,782,000 What is the IRR of the project? % (Round to two decimal places.) T2 $3,270,000 T3 $589,000 $4,100,000 $377,000 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.

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
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Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line:
Click on the Icon in order to copy its content into a spreadsheet.
Category
Investment
Net working capital change
Operating cash flow
Salvage
To
- $8,337,258
- $589,000
$2,782,000
What is the IRR of the project?
% (Round to two decimal places.)
T2
$3,270,000
T3
$589,000
$4,100,000
$377,000
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.
Transcribed Image Text:Apply WACC in IRR. Leeward Sailboats is reviewing the following new boat line: Click on the Icon in order to copy its content into a spreadsheet. Category Investment Net working capital change Operating cash flow Salvage To - $8,337,258 - $589,000 $2,782,000 What is the IRR of the project? % (Round to two decimal places.) T2 $3,270,000 T3 $589,000 $4,100,000 $377,000 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.
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