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Answers and the process plzzzz!! 1) Uranium Gas Oil and Other Exploits United Ltd. Co. is planning the acquisition of a perpetual driling machine worth

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1) Uranium Gas Oil and Other Exploits United Ltd. Co. is planning the acquisition of a perpetual driling machine worth $10,000 (quantities expressed in thousands). The company is expecting to earn $1,200 annually on a perpetual basis. The cost of capital (WACC(U)) is 10 percent. The acquisition is financed with 40 percent perpetual debt, at a cost of 6 percent annually. The tax rate is 25 percent. You are using the APV valuation model. Determine the base-case NPV. a. $1920 b. $3050 c. $720 d. $2000 2) (Continuation) Determine the PV of the tax shields. a. $1,000 b. $2,400 c. $600 d. $900 3) (Continuation) Determine the cost of equity under this scenario. a. 0.127 b. 0.110 c. 0.094 d. 0.132 4) (Continuation) Determine the WACC (L). a. 0.075 b. 0.084 c. 0.094 d. 0.089 5) (Continuation) Determine the NPV according to the WACC (L) rule. a. $6,000 b. $2,766 c. $4,286 d. $3,483

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