Question 3 Ingram Electric Products is considering a project that has the following cash flow...
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Accounting
Question 3
Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC:
9.50%
Year
0
1
2
3
Cash flows
-$800
$350
$350
$350
15.03%
13.73%
10.88%
12.95%
10.62%
5 points
Question 4
Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $1,200, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?
2.54%
2.70%
3.09%
3.21%
3.63%
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