Detailed Answer please

QUESTION 1 [40 MARKS] (i) The cost of monitoring management is considered to be a (an): A bankruptcy cost transaction cost agency cost B C D institutional cost (ii) The restructuring of a corporation should be undertaken if: ABCD (1 mark) (iii) Determine the net present value for a project that costs $104,000 and would yield after-tax cash flows of $16,000 the first year, $18,000 the second year, $21,000 the third year, $23,000 the fourth year, $27,000 the fifth year, and $33,000 the sixth year. Your firm's cost of capital is 12.00%. A $138,000.00 B $90,238.86 C -$13,761.14 $34,000.00 $153,621.60 D mo the restructuring can prevent an unwanted takeover. the restructuring is expected to create value for shareholders. the restructuring is expected to increase the firm's revenue. the interests of bondholders are not negatively affected. E (iv) Flaws of the accounting rate of return method include: (1 mark) ABC (2 marks) the choice of accounting g hurdle return rate is essentially arbitrary depreciation method has a large impact on the accounting rate of return this method makes no adjustment for project risk or for the time value of money D all of the above (1 mark) Page 2 of 12