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14.Following is project A's cash flow tableYearCash Flow0-26,00016,20026,20036,20046,20059,700Assuming that the project is found by 40% of equity and 60% ofdebt. The required rate of return of equity is 10%. The yield ofdebt is 6% and the tax rate is 30%.Using the above information to answer Q1 - Q4.Q1) What is the WACC of this project?a)6.52%b)4%c)7.43%d)5%Q2) What is the NPV of this project?a) 2303.50b) 2823.21c) 2795.86d) 2187.62Q3) What is the IRR of this project?a) 10.27%b) 9.54%c) 8.78%d) 9.23%Q4) Should we invest in this project?a) No, because the project payback year is too longb) No, because the IRR is too lowc) Yes, because the project NPV is greater than 0d) Not sure
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