Question
A company intends to invest $1,000,000 60% equity 15% cost of capital 40% debt cost of debt being 8% They will earn net income of
A company intends to invest $1,000,000
60% equity
15% cost of capital
40% debt
cost of debt being 8%
They will earn net income of $250,000 per annum for the next 5 years
Annual depreciation is $40,000 per annum
- What is the WACC
- What is the annual net cash inflow
- Based on NPV and IRR analysis should the project be undertaken
- What other factor should the company consider before making this making this investment
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Principles Of Finance With Excel
Authors: Simon Benninga, Tal Mofkadi
3rd Edition
0190296380, 9780190296384
