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.
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
Problem 1PS
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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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