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10:46 AM ooo AT&T F 61% a d2l.coloradomesa.edu Capital Budgeting Worksheet Your company currently has a debt to total assets ratio of0.35 Additionally, your company

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10:46 AM ooo AT&T F 61% a d2l.coloradomesa.edu Capital Budgeting Worksheet Your company currently has a debt to total assets ratio of0.35 Additionally, your company has a tax rate of 32% abeta of 1.2, and no preferred stock outstanding Your company bonds have 5%coupon rate, a yield to maturity rate of85% and mature in 5 years Currently, a five-year Treasury note is yielding 1.25% and the historic retum on the S&P500 Spercent. What is our company's weighted average cost ofeapital(WACC? 2. Find the NPV,IRR, Payback Period, Discounted Payback Period, Profitability Index, and MIRR (assuming that funds are reinvested at WACcy for the following projects. Project B 600 I00 150 300 100 ProjectA Project B Project Payback Period Discounted Payback Accept Reject If the projects were independent which project(s) should you invest in? If the company followed your advice, how much value would be added to the company? 4 the projects mutually exclusive, which projects should you invest in? Ifthe company followed your adviec, how much value would be added to the company

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