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Calculate the firm's WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equity from the Balance Sheet.



  • Calculate the firm's WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equity from the Balance Sheet. The firm has no preferred stock).
  • Use the WACC to calculate NPV and evaluate IRR for proposed capital budgeting projects. Assume the projects are mutually exclusive and the firm has the money available to fund the project.

12/31/2018
Current Assets
Cash And Cash Equivalents 8,719,000
Short Term Investments 270,000
Net Receivables 7,140,000
Inventory 3,126,000
Other Current Assets 2,042,000
Total Current Assets 21,297,000


Long Term Investments 2,407,000
Property Plant and Equipment 17,587,000
Goodwill 14,806,000
Intangible Assets 15,823,000
Other Assets 5,122,000
Total Assets 77,042,000


Current Liabilities
Accounts Payable 7,211,000
Short/Current Long Term Debt 3,951,000
Other Current Liabilities 6,601,000
Total Current Liabilities 17,763,000


Long Term Debt 28,293,000
Other Liabilities 12,611,000
Total Liabilities 58,667,000


Stockholders' Equity
Total Stockholder Equity 18,375,000

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