Capital Budgeting Process (54 pts) A. 10% B. 11% C. 9.5% 2. The weighted after tax cost of debt A. 2.2% B. 4.2% C. 5.5% 3. The WACC A. 6% B. 7% C. 8% 4. The Hurdle nate for project 2 A. 10% B. 11% C. 8% 5. The Hurdle rate for project 1 A. 9% B. 11% C. 8% 6. The Hurdie nate fir project 3 A. 9 ans B. 1716 c. 854 7. OC for project 1 is year 2 A. 99 in 100 ciet 8. FCF firmpeat 1 in year 3 A. is B15 c. 30 9. OCF for project 2 in year 5 A. 9 B. 167 C. 17 10. The ending halince of CF for project 3 in year 1 A 50 B. 6 ? c. 7 11. The he ending balince of CF for project 3 in year 5 A. 179 B. 197 C. 215 12. NPV for project 1 A. 149 B. 167 C. 18 13. NPV for project 2 A. 89 3. 134 C. 115 14. NPV for project 3 A1B B. 137 C. -3.8 15. IRR for project 1 A. 17% B. 29% C. 25% 16. IRR for project 2 A. 10% B. 20% C. 25% 17. IRR for project 3 A. 17% B. 10% C. 15% 18. Payback for project 1 A. 2.6 years B. 3.6 years C. 4.5 years 19. Payback for project 2 A. 3.5 years B. 2.5 years C. 4.5 years 20. Payback for project 3 A. 3.5 years B. 4.2 years C. 4.5 years 21. AAR for project 1 A. 17% B. 34% C. 45% 22. AAR for project 2 A. 19% B. 22% C. 29% 23. AAR for project 3 B. 10% B. 20% C. 30% 24. PI for project 1 A. 55% B. 45% C. 60% 25. PI for project 2 A. 35% B. 45% C. 55% 26. PI for project 3 A. 12% B. 17% C. 2% 27. The best project is A. Project 1 B. Project 2 C. Project 3 Financial Analvsis ( 36 points) 1. Bhori-ierm solvency, or ligulday, ratios 111. Asset utilization, or turnover, ratios iv. Proficaticty ration Podinargin - thylocets: V. Narket vaive risiot 28. The liquidity of the company is A. Outperforming the benchmark B. Under-performing the benchrnark C. In line he benchmark 29. The solvency ratios depict A. The manure stage of the industry B. The startup stage C. None of the above 30. The credifworthiness of the company is A. Outperforming the benchmark B. Under-performing the benchmark C. In line he benchmark 31. The capscity of reimbursing for the company is A. Outperforming the benchmaik 8. Under-performing the benchmark C. In line be benchmark 32. The inventory managcment of the company is A. Outperforming the benchmark B. Under-performing the benchmark C In line be benchmark 33. The credit policy of the company is A.Outperforming the benchmark B. Under-performing the benchmark C. In line he benchmark 34. The CCC for the company is A. Outperforming the benchmark B. Under-performing the benchmark C. In line he benchmark 35. The Asset tumover the company is A. Outperforming the benchmark B. Under-performing the betschmark C. In line he benchmark 36. The net profit margin of the company it A. Outperforming the benchmark B. Under-performing the benchernark C. In line he benchatiark 37. ROE the company is Nounperforming the benchmark B. Under-performing the benchmark C. In line he benchinark 35. P/B of the company depicts A. Underpriced siock B. Overpriced siock C. Fairly pnced stock 39. P/S of the company depicts A. Underpriced stock B. Overpriced stock C. Fairly priced stock 40. MTB of the company depicts B. Value stock B. Growth stock C. None of the above 33. The credit policy of the company is A.Outperforming the benchmark B. Under-performing the benchmark C. In line he benchmark 34. The CCC for the company is A. Outperforming the benchmark B. Under-performing the benchmark C. In line he benchmark 35. The Asset tumover the company is A. Outperforming the benchmark B. Under-performing the betschmark C. In line he benchmark 36. The net profit margin of the company it A. Outperforming the benchmark B. Under-performing the benchernark C. In line he benchatiark 37. ROE the company is Nounperforming the benchmark B. Under-performing the benchmark C. In line he benchinark 35. P/B of the company depicts A. Underpriced siock B. Overpriced siock C. Fairly pnced stock 39. P/S of the company depicts A. Underpriced stock B. Overpriced stock C. Fairly priced stock 40. MTB of the company depicts B. Value stock B. Growth stock C. None of the above
