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Can someone please assist me in answering these study guide questions? 8. A firm has an opportunity to invest in an expansion project that will

Can someone please assist me in answering these study guide questions? image text in transcribed
8. A firm has an opportunity to invest in an expansion project that will generate $55,000 per year for the next 10 years and requires an initial investment of $300,000. The firm will need external funding to undertake the project. The flotation costs associated with the security issuance will be 10% of the funds raised. The firm does not make a flotation cost adjustment to WACC but rather treats them as a part of initial cash outflow. Given that the firm's WACC is 11%, should the firm invest in this project? a. b. c. d. Yes, since the NPV is approximately $23,908 Yes, since the NPV is approximately $9,494 No, since the NPV is approximately -$9,426 No, since the NPV is approximately -$8,658 9. The required return on a firm's equity depends on which of the following? I. The beta of the firm's existing assets II. The amount of debt financing (leverage) a. I only Il only Both I and II Neither I nor

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