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Hi! Kindly help me in answering these questions in Financial Modeling and Capital Budgeting. Thank you! 4 Deal Advisory: In approximately how many years will

Hi! Kindly help me in answering these questions in Financial Modeling and Capital Budgeting. Thank you!

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4 Deal Advisory: In approximately how many years will the firm break-even based on discounted payback period? * (1 Point) Manufacturing firm (In Php 000) 0 1 2 3 4 5 6 7 Net income 107 2,081 3,896 5,328 6,862 8,509 9,064 Depreciation and 14,286 14,286 14.286 amortization 14,286 14,286 14,286 Change in NWC (326) (353) (285) (149) (153) (158) 5,424 Capex (100,000) 0 0 0 0 0 O Interest expense 6,650 5,550 4,345 3,026 1,582 0 0 Incremental cash flows (100,000) 20,717 21,564 22 242 22,491 22,576 22,636 14,488 Discount factor 0.9281 0.8613 0.7994 0.7419 0.6885 0.6390 0.5930 A. 4.85 years O B. 5.79 years C. 6.00 years D. 5.85 years E. 6.85 yearsDeal Advisory: A manufacturing rm will buy new equipment worth Phpm million. It will be used to produce a new line of products in the market. The company will use internallyr generated cash flows and borrow from a bank to acquire the equipment: 3U million pesos in cash and TD million pesos in debt. Calculate the firm's weighted average cost of capital given the following: 1r'ield on governmentissued bonds : 4% pa Market portfolio return : 11% pa Stock beta of similar listed manufacturing firms : [1.9 Loan interest rate, pretax : 9.5% p.a. Corporate income tax : 30% The incremental cash flows that will be generated by the manufacturing rm using the new equipment in problem 1 are provided below. * (1 Point} (In Flip 5551 5 1 2 5 4 5 5 5 Mel 'I'ICM'IE 1|]? 2,081 3,555 5,328 6,13. 3,509 Emil m 5"\" 14,255 11,255 11,255 14,255 15,255 14,255 5 Change in mp {525; (555;. {2551 1,115; {155; {1551 5,524 Cape: {155.5551 5 5 5 5 5 5 5 Inn-51 515151155 5,555 5,555 1,555 5,525 1,552 5 5 Incremenlal cash 155.5 {155,555} 25,512 21 ,555 22242 22,451 22,525 22,555 14,455 51mm 15555 5.5251 5.5515 5.5554 5.5415 5.5555 5.5555 5.5555 0 .5. 5.5555 0 B. 5.5355 0 c. 5.5455 0 o. 15.5255 0 E. 15.3555

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