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Answer p9-1 and p9-5 P9-1 Concapt of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated

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P9-1 Concapt of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated by the firm recently involved building new faclites in different regions, North and South. The basic variables surrounding each project analysis and the resulting decision actions are summarized in the following table Basic vanables Cost Life Expectad netar Narth South 15 years 15% 15 yean Sounce Equay 16% Action Reason lavest S% > 7% ca 15%

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