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Search this cour 0,11,13,15 SP1 2021 am 2 Chs 10,11,13,15 SP1 2021 Save Submit Test for Grade . Question 18 of 5 You are on the staff of Camden Inc. The CFO believes project acceptance should be based on the NPV, but Steve Camden, the president, insists that no project should be accepted unless its IRR exceeds the project's risk-adjusted WACC. Now you must make a recommendation on a project that has a cost of $15,000 and two cash flow $110,000 at the end of Year 1 and $100,000 at the end of Year 2. The president and the CFO both agree that the approprinte WACC for this project is 10%. At 10%, the NPV is $2,355-37, but you find two IRRs, one at 6:33% and one at 527.01%, and a MIRR of 11 32%. Which of the following statements best describes your optimal recommendation, i..., the analysis and recommendation that is best for the company and least likely to get you in trouble with either the CFO or the president? 1. You should recommend that the project be rejected because its NPV is negative and its is less than the WACC b. You should recommend that the project be accepted because (1) its NPV is positive and 21 although it has two Rs, in this case it would be better to focus on the Mar, which exceeds the WACC You should explain this to the president and tell him that that the firm's value will increase the project is accepted B. You should recommend that the project be rejected because, although its NPV is positive, it has an IRR that is less than the WACC. You should recommend that the project be rejected because (1) its MPV is positive and it has two 18As one of which is less than the WACC which indicates that the firm's value will decline the project is accepted. Dee you should recommend that the project be rejected because, although its NPV is positive, MIRR is less than the WACC, and that indicates that there's value wil decline to accepted

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