Forego the project despite its high rate of return

Assignment Help Financial Management

Reference no: EM131567870

Your company's weighted-average cost of capital is 11 percent. It is planning to undertake a project with an internal rate of return of 14%, but you believe this project is not a wise investment. What logical arguments would you use to convince your boss to forego the project despite its high rate of return?

Reference no: EM131567870

Questions Cloud

What is the projected value of your investment : What is the projected value of your investment in 32 years? not round at intermediate steps in your calculation.

What gross rate per unit of coverage should be charged : If Rock Solid wants to allow for a 40 percent expense ratio for this line of coverage, what gross rate per unit of coverage should be charged?

The highest price to intrinsic value : As of today, Nordstrom Inc's projected FCF intrinsic value is $50.74. During the past 13 years, the highest Price to Intrinsic Value:

What annual interest rate is the bank charging : What annual interest rate is the bank charging? Assume that compounding is annual.

Forego the project despite its high rate of return : What logical arguments would you use to convince your boss to forego the project despite its high rate of return?

Calculate the present worth given the interest rate : Calculate the present worth given the interest rate of 10%, compounded annually.

Existence of the buffett community present to marketers : What kind of opportunities does the existence of the Buffett community present to marketers? Develop a list of specific marketing and promotional tactics.

Annual standard deviation of return on stock : The annual standard deviation of return on Stock A's equity is 37 percent and the correlation coefficient of these returns,

Calculate the firm net new long-term debt added : Calculate the firm's net new long-term debt added during the year.

User Account

All Pages