Making an investment with a return

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Reference no: EM1361880

Your company's weighted average cost of capital is 11%. You believe the company should make a particular investment, but the IRR of this investment is only 9%.

What arguments might exist in support of your position?

Is it really possible that making an investment with a return below your firm's cost of capital can ever create value?

 

Reference no: EM1361880

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