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?
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As discussed in the previous response, the IRR is the discount rate that makes the NPV of an investment zero. An investment ...
The solution discusses if a company should make a particular investment with an IRR of the investment only being 9%.