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#24 What is the discounted payback period? #25 What is the net present value? *26 What is the internal rate of return? H27. What is

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\#24 What is the discounted payback period? \#25 What is the net present value? *26 What is the internal rate of return? H27. What is the modified internal rate of return? \#28 Should you accept the project? FINNL. NAMZ The Reef Comporation has an cpportunicy to sell ahark repetilant Ohcar, the CFO, woyld Hike Sykes, the vice pretident, to cvaluaic the gecject. Ohcar ownstall 200,000 ourtstandify shares of the Precr Corporatien. Frarieie, an independent financial analyst, hat estimated that the honds should sclit foe 51155 . Frankie has estimatcd that the stock ahoild aell for 519.75. Fratbic has eccimated the beta to be 1.6. Frankie estimates the market will retarn 12ty. Liso, the gotfather, will have an aztidote to the repellant after there years. Den ficubers owas all 2,200 cutstandiag bonits. Doo Feinberg rocecves 545 interis payments every aix, arentlis Lenyy, the operalions manager, has ciliated that they will noed 4 pieces of equiprneat that cost 5200,000 each. Installatice will be a flat 490,000 . Leney ectinsated that they will need $160,000 more in ieversery. I cmy belieses that the cquipment wail be warth 5325,000 alser the throc-year num. Lenny hav extimated the cost will be 33d per unit. Lenny eutimales that feucd cost will be 520.000. Lola. the marking manager, believes the repcilant will sell for 51.25. Lola believes the dernand wall be able to sell 680,000 in year 1,640,000 in year 2y aod 5500000 in yeli 5 . Angic, the CFO, says the equipment owill fall voder a 3-ycat MACRS. Angic cstimates that accounts payable will incretse by $20.000 and accounts. receivabies will increase by 590,000 . Angie las etimited the trox rate as a flat 400 . The Roof Corperation bonds mature in 10 years. The par value on the bonds is 51000 . The coupon rate is 965 on the boode. Treaviry boeds yicld 5.4. nil what is the cost of deht? 12 what is the after-tax cost of debl? \#33 what is the cost of cquaty? 84 what is the sveight of debt in the compare? 4.5 what is the weight of cquity in the company? Af what is the weighted average cost of cathitil

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