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For this week's assignment, use the spreadsheet you created in Module 3 and updated in Module 6. Update the spreadsheet by adding the financing component

For this week's assignment, use the spreadsheet you created in Module 3 and updated in Module 6. Update the spreadsheet by adding the financing component (calculation of WACC) for the model. In other words, instead of the model simply having an input that is the value of "r," users should input information about the capital structure of the firm, the cost of debt, the cost of equity for the firm, the weight of each, and WACC should be calculated and used in the calculations of the model. For your submission, the only additional data that will be needed to add to your model is:

Cost of Equity13%
Cost of Debt8.5%
Weight of Equity50%
Weight of Debt50%

Below is module 6 data:

The inputs for your submission are:
Initial Cost$100,000
Annual Revenues$81,155
Annual Costs (Excluding Depreciation)$20,000
Year 3 Overhaul$15,390
Year 6 Clean-up Costs$17,690
Equipment Salvage/Book Value$10,000
Useful Life6 years
r (this was not provided in 2.3)0.10
Tax Rate0.35
Equipment Sold For

$20,000

image text in transcribed Year Capital Costs 0 1 2 3 4 5 6 O&M Overhaul -80000 -12000 -12000 -12000 -12000 -12000 -25000 10000 Chart Title 20000 0 1 2 3 -20000 -40000 -60000 -80000 -100000 Year Capital Costs O& Chart Title 2 Year 3 4 Capital Costs O&M 5 Overhaul 6 7 Year Capital Costs 0 1 2 3 4 5 6 7 8 9 10 O&M Overhaul -100000 10000 -30000 -30000 -30000 -30000 -30000 -30000 -10000 Chart 20000 0 1 2 3 -20000 -40000 -60000 -80000 -100000 -120000 Year Capital Cost Chart Title 2 Year 3 Capital Costs 4 O&M 5 Overhaul 6 7

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