If your WACC is 10.1%, what does a positive NPV of $150,567 mean and why should you accept the project?

Question

If your WACC is 10.1%, what does a positive NPV of $150,567 mean and why should you accept the project?

Answer 1

Yes.

In theory, you should accept all projects that exceed the cost of capital.   That's positive EVA.

In reality, you won't necessarily do that because capital is not unlimited, you don't want to be in businesses that don't fit your business model and don't necessarily fit your risk profile (ie, the project WACC is much higher than the corporate WACC).