Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $1,912 and matures in 16 years. The par value is $2,000 and the company's tax rate is 35 percent. What is the company's aftertax cost of debt?

07_14_2018_QC_CS-131353

4.11%

3.43%

4.46%

3.20%

4.72%

Your company has a project available with the following cash flows:

Year	Cash Flow
0	$80,800
1	21,650
2	25,300
3	31,100
4	26,150
5	20,100

If the required return is 15 percent, should the project be accepted based on the IRR?

No, because the IRR is 17.68 percent.

Yes, because the IRR is 17.00 percent.

Yes, because the IRR is 16.32 percent.

No, because the IRR is 16.32 percent.

Yes, because the IRR is 17.68 percent.