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3.-38. Assume that you are a financial analyst for Tangshan Mining Company and are given the following information about the firm's new project: the project's
3.-38. Assume that you are a financial analyst for Tangshan Mining Company and are given the following information about the firm's new project: the project's initial after-tax cost at t=0 is $4,500,000 and the project is expected to provide after-tax operating cash inflows as follows: a. Calculate the payback period for this project. 1. If the maximum acceptable payback period is 4 years, should this project be accepted? Why or why not? b. Assume that the firm's "Weighted Average Cost of Capital" (WACC) is 10%. Calculate the "Net Present Value" (NPV) for the above project. 1. Based on your NPV calculations above, should this project be accepted? Why or why not
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