Please, consider the information you obtained in answering part 1 of the PA2 in week 6 again. Suppose that the corporation is offered an investment which has the following cash flows. Please justify if the project is feasible based on WACC that you calculated in your PA2.  WACC is 3.02%                                                                                                 Table 2 Cash flows for the proposed project                                                                                               In million dollars Year 0 1 2 3 4 5 6 7 8 9 10 Cash flow -$10 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 4CMA
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  1. Please, consider the information you obtained in answering part 1 of the PA2 in week 6 again. Suppose that the corporation is offered an investment which has the following cash flows. Please justify if the project is feasible based on WACC that you calculated in your PA2.  WACC is 3.02%

                                                                                               

Table 2

Cash flows for the proposed project                                                                                               In million dollars

Year

0

1

2

3

4

5

6

7

8

9

10

Cash flow

-$10

$1,5

$1,5

$1,5

$1,5

$1,5

$1,5

$1,5

$1,5

$1,5

$1,5

 

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