Project a has a cost of 50 million and an irr of 14 project


A firm has a WACC of 10% until it has raised $100 million. Beyond that the WACC is 12%. The firm has the following projects and associated costs:

Project A has a cost of $50 million and an IRR of 14%; project B has a cost of $70 million and an IRR of 16%; and project C has a cost of $35 million and an IRR of 6%.

What is the Optimal Capital Budget?

Solution Preview :

Prepared by a verified Expert
Business Management: Project a has a cost of 50 million and an irr of 14 project
Reference No:- TGS02566419

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)