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If possible, please I need the solution manually not through computation. The Lumby and Jones Eggs Co. Just before approving its second capital budget of
If possible, please I need the solution manually not through computation.
The "Lumby and Jones Eggs Co." Just before approving its second capital budget of LB 3.6m, "Lumby and Jones Eggs Co.", realized a total average cost of capital rate of 19% in relation to its existing investments of LE 4.4m. If the LE 3.6m. new finunco needed for the second capital budget is added to these LE 4.4m. existing investments, the finance lines alternative courses of investments including ready for operating mutually exclusive investment projects. The net cash flows and the IRR of each of these two alternative courses of investmuits are as tollows where the first alternative is Required : (A) For the assumed LE 8m. total capital to be invested, compute the total weighted average cost of capital at the optimal capital structure line. (B) Compute the overall marginal cost of capital related to the best marginal alternative course of investment then determine the optimal investment decisionStep by Step Solution
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