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Other information ou mi ht need: Illmi T Financial Info Imatione D/Ae Interest rate on debt R uired rate of return on e Mar
Other information ou mi ht need: Illmi T Financial Info Imatione D/Ae Interest rate on debt R uired rate of return on e Mar Tax Ratee 0.6040 60/'oe 300/oe 250/0 Using the above information, answer the following questions and perfolm the analysis outlined below .e 2. 3. 4. 5. 6. NVhat is the Illini Tap's weighted-average-cost-of-capital (WACC)? e Calculate the NATCF find the NPV of each investment using the WACC as the discount rate. Find the IRR of each investment. e Find the MIRR of each investment using the WACC as the discount rate. Using the NPV as your decision criteria, which investment would you choose as the owner of the Illini Tap? What if you made the decision based on IRR or MIRR? Suppose that the microbrewery did NOT cause the decline in other sales and that serving food did NOT cause an increase in other sales, but everything else outlined in the information above is the same. Basically, ignore tbe information in the effects on other sales section.e How would the NPV, IRR, and NIIRR for the two investments compare? Note: You should not necessarily have to do any additional calculations for this question. You should be able to say something about the NPV, IRR, and NIIRR for the two investments given the other infonnation.
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