Question

The CFO has calculated the AFN of a project and it is positive. What should be...

The CFO has calculated the AFN of a project and it is positive. What should be his next step?

a. Use this number as the CF0 in the NPV or IRR calculation.

b. Nothing, he is done!

c. Decide what to use the positive AFN for, for example raise the dividends.

d. Invest in the project.

e. Use this number to calculate the WACC.

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