Question
GIF Inc. is evaluating a project that will increase annual sales by $175,000 and annual cash costs by $98,000. The project will initially require $130,000
GIF Inc. is evaluating a project that will increase annual sales by $175,000 and annual cash costs by $98,000. The project will initially require $130,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 32 percent.
gif, Inc. is looking at raising additional capital for a future project. For gif, Inc. to determine whether this project is worth investing in, it must first determine the cost of the capital it will use to finance the project.
(Input all answers as values with no commas, with no symbols ex. no $ or %. Input all % answers as whole numbers without symbols ex. 10.03 for .1003. Input all final answers two decimal places out.)
Q: What is the firms WACC?
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