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Balance Sheet x Assets Liabilities Long Term Assets 1 0 0 0 0 T L Long Term Liabilities 5 0 0 0 T L Bank

Balance Sheet x
Assets
Liabilities
Long Term Assets
10000TL
Long Term
Liabilities
5000TL
Bank Loan 5 years, %12
Shareholder's
Bond Issue 5 years, %12
equity
Stock 5 years, %15
Net Present Value and Other Investment Criteria
Payback Method (PM)
Discounted Payback Method (DPM)
Profitability Index (PI)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Modified Internal Rate of Return (MIRR)
Weighted Average Cost of Capital (WACC)=Wd**rd**(1-T)+We**re
Wd : Debt weight in total financing
rd : Cost of debt
we : Weight of equity in total financing
re : Cost of equity
T: Corporate tax ratio
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