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2) Using the following general assumptions and project specific ones calculate the Dollar WACC. $ General Economic Assumptions Price inflation6.0%8.5%Yield on government bonds 4.75 Equity

2) Using the following general assumptions and project specific ones calculate the Dollar WACC.

$ General Economic Assumptions Price inflation6.0%8.5%Yield on government bonds 4.75 Equity market risk premium 6.33 Project Specific Assumptions Cost of debt 11.41 Debt to capital ratio 0.35 Systematic risk Equity beta 0.92 Asset beta of comparable companies 0.60 Tax Rate 40% WACC9.283274 Debt to capital ration 0.65 Ke10.59469 Kd11.41 T (1-0.4)0.60

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