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I. In the Data Table: A. Use the WACC calulated on the Cost of Capital tab B. Calulate the loan amount with a 10% down
I. In the Data Table:
A. Use the WACC calulated on the Cost of Capital tab
B. Calulate the loan amount with a 10% down payment
II. In the After-tax Cash Flow:
C. Complete the Depreciation Expense from Project 4 (straight line, $0 Salvage)
D. Complete the interest expense using the loan interest rate.
E. Complete the After-tax Cash Flow Table including the interest expense
F. Compute the PV, NPV1, IRR, and adjusted NPV2
\begin{tabular}{|l|l|r|l|} \hline \hline \multicolumn{4}{|c|}{ Payback Tab } \\ \hline & & & \\ \hline & & 191.10 & million \\ \hline Cost of new equipment (at yeat 0) & & 26.0% & \\ \hline Corporate income tax rate - federal & & 8.0% & \\ \hline Corporate income tax rate - State of Maryland & 8.16% & \\ \hline Discount rate for the project using WACC & & & million \\ \hline Loan Amount & & 5.25% & \\ \hline Loan interest rate (Prime +2 ) & & \\ \hline \end{tabular} \begin{tabular}{|l|l|r|l|} \hline \hline \multicolumn{4}{|c|}{ Payback Tab } \\ \hline & & & \\ \hline & & 191.10 & million \\ \hline Cost of new equipment (at yeat 0) & & 26.0% & \\ \hline Corporate income tax rate - federal & & 8.0% & \\ \hline Corporate income tax rate - State of Maryland & 8.16% & \\ \hline Discount rate for the project using WACC & & & million \\ \hline Loan Amount & & 5.25% & \\ \hline Loan interest rate (Prime +2 ) & & \\ \hline \end{tabular}
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