a. What is the NPV decision rule and how is it related to the IRR decision rule? b. What happens to NPV as a firm's WACC increases? Discuss why growth rate models are practical and convenient ways to look at stock valuation. Compare...
12 years, 15 years and 20 years) as it should offer an expected project IRR of 9.5% and an equity IRR of 15.1% using 60% debt/equity. Project IRR will remain the same even at a higher leverage of 80%. While project IRR is expected to...