If the Weighted Average Cost of Capital (WACC) Is 9

question 10

Multiple Choice

If the weighted average cost of capital (WACC) is 9% calculate the NPV of the project.

• A) -2.5 million
• B) +2.5 million
• C) zero
• D) none of the above

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Definitions:

Current Ratios

The liquidity ratio that provides insight into a company's capability in covering its short-term obligations with its short-term assets, essentially the same as the current ratio but rephrased.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Financial Problems

Issues related to managing money, including difficulties in generating income, managing expenses, or meeting financial obligations.

Benchmark Analysis

A method of comparing business processes and performance metrics to industry bests or best practices from other industries.