Exercise #$1$: Regal Industries has the following capital structure. Its corporate tax rate is $35\%.$

Compute the weight accurate to min $6$ decimals to use in subsequent calculations.

Enter the weight as a decimal in Canvas, e$.$g$.43\mathrm{.}22\%$ as $0\mathrm{.}4322,$ not percent, accurate to $4$ decimals,

since Canvas cuts off at $4.$ However, use min$6$ decimal accuracy in the subsequent calculation.

A$.$ Compute WACC $=$

$=$

$[3].......\%$

Enter WACC as percent, e$.$g$.13\mathrm{.}2221\%$ as $13\mathrm{.}2221,$ not as $0\mathrm{.}1322$

B$.$ Regal is evaluating a project costing $$48,000$ which will generate $$10,000$ for $6$ years. It will require

an increase of $$2,000$ in NWC at the outset, but no recapture. Should Regal accept the project?

$NPV=$$

$4$

Accept?