9. Given the following information, what is the firm's weighted average cost of capital? Weight of debt = 28%; weight of equity = 72%; cost of equity = 12%; cost of debt before tax = 9%; tax rate = 35%. A) 10.23% C) 11.86% B) 11.57% D) 12.09% 10. You are considering an investment with the following cash flows and your required rate of return is 9%. What is the project's IRR? According to IRR rule, should you take this investment? Year 0 1 2 3 4 Cash Flow -$118,000 $50,000 $40,000 $30,000 $20,000 A) 11.45%, yes C) 8.49%, no B) 10.22%, yes D) 7.89%, no Use the following information to answer next three questions You are considering the purchase of an investment that would pay you $15,000 per year for Years 1-4, $12,900 per year for Years 5-7, and $9,500 per year for Years 8-10. If the investment costs you $90,000 and you require a 12 percent rate of return; 11. What is the project's Payback period? If you require a payback of 5 years, should you take this investment? A) 4.80 years, Yes C) 7.90 years, No B) 6.32 years, No D) 8.12 years, No 12. What is the project's NPV? According to NPV rule, should you take this investment? A) $14,428, No $9,905, Yes B) $8,879, Yes D) -$12,239, No 13. What is the project's Profitability Index? According to PI rule, should you take this investment? A) 0.84, No C) 1.15, Yes B) 0.92, No 1.25, Yes D) 14. A project costs $55,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $500 up-front (which will be recovered at the end of project's life). The project has a required return of 11%. The project generates OCF of $25,000/year. What is the project's NPV? $ 7,897.76 - $ 1,085.87 $ 5,958.46 D) - $ 895.45 A) B)