All problems are available in MyFinanceLab. P9-1 Concept of cost of capital Mace Manufacturing is in the process of anal ojects evaluated by the firm recent The basic involved building new facilties in different regions, North and South. The tly variables surrounding each project analysis and the resulting decision summarized in the following table. investment decision-making procedures. Two projects evaluated by South. cisio actions are Basic variables Cost Life Expected return Least-cost financing North $6 million 15 years 8% South $5 milliorn 15 years 15% Debt 7% Source Equity 16% Cost (after-tax) Decision Action Reason Invest Don't invest 890 > 7% cost 15%