Question

Project Rastarum is expected to generate $12,400 each year for the next 5 years, using, costing blizzent co. $40,000 today. if the company's WACC is 18%, blizzent should ___ the project because its IRR is ___ than its WACC.

Accept greater
Accept less
Rejed, greater​

Answer 1

Reject,

Step-by-step explanation:

When calculating the IRR, I got 16.6%, which is less than the wacc. This means that the rate of return is lower than what it costs 18% wacc.

I think the answer should be reject, less.