What Is the NPV of the Project Using the WACC

question 94

Multiple Choice

What is the NPV of the project using the WACC methodology?

• A)$58,028.68
• B)$49,613.03
• C)$48,300.47
• D)$102,727.55
• E)None of the above Using the cash flow menu of a financial calculator: CF0 = -$100,000; C01 = $39,800; F01 = 4; C02 = $43,100; I = r_WACC = 11.20; NPV = $48,300.47

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Definitions:

Weighted-Average Cost Method

A costing method that assigns the cost of inventory based on the average cost of all similar items in the inventory, regardless of when they were purchased.

Blending Department

A part of a manufacturing process where ingredients are combined according to specific recipes to produce a final product.

Sequential Processes

Steps in manufacturing or service delivery that are performed in a specific order, where the completion of one step is dependent on the completion of the step before it.

Weighted-Average Method

An approach used in cost accounting to assign a cost to inventory on the basis of the average cost of all similar items held, considering their weight.