Information for cakukany ABC Company's WACC: Cast et common Aquity in Bcore tax cost of debt) Marginal taste Carman there sending Cument stock price contam delat sekaralue 9.00 Balance Sheet Lakilities and $270.00 Accounts payable and se $190.00 Account ce $250.00 Sca.cu Short am debe Lurlemodel $150.00 $1,200.00 $1,JAD. Agir C Piestand utement, ne Total assets $3.420.00 Total and city $3,420.00 Famub Narnes valeor total dicht Marikear como quicy Total capital 11 Protect common mully After-lus cast of deat Weighed Wrap Cost of Catal (WACCI WACC 11.25% >>> 2 3 Project A ($750) ($200) ($75)| $300 $500 $700 $800 ($125) Project B ICE ($750) $225 $240 $395 $400 $300 $200 SO Project NPV Calculations: Formulas NPVA #N/A NPVB #N/A Project IRR Calculations: IRRA #N/A IRRB #N/A | Project MIRR Calculations: MIRRA #N/A WHY do we use MIRR for project A? The Butler-Perkins Company (APC) must decide between two mutually exclusive projects. Each costs 87,500 and has an expected life of 5 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions: Expected Life Low to Average Husk Projects - Presets Rug WACC AS 11% Rollowing Req WACC: Project A i LOW to AVERAGE Project B is a RISKY project Cash Probability (cal 1) Now Prodcr CF-Pop Ann Protect-tap Cah Flow Pruber Ann CFA 2 2. WILKI expected annual cash flow? Sid Deviation Coel equals SORT equals 5D/Exp Ann CF MIV/! Cael Var VIVO! Project: Project B: For project A Calculate the Nis Adjusted NPV fer V Project B to. Band on the riuk-adjusted NPVs, which project should Information for cakukany ABC Company's WACC: Cast et common Aquity in Bcore tax cost of debt) Marginal taste Carman there sending Cument stock price contam delat sekaralue 9.00 Balance Sheet Lakilities and $270.00 Accounts payable and se $190.00 Account ce $250.00 Sca.cu Short am debe Lurlemodel $150.00 $1,200.00 $1,JAD. Agir C Piestand utement, ne Total assets $3.420.00 Total and city $3,420.00 Famub Narnes valeor total dicht Marikear como quicy Total capital 11 Protect common mully After-lus cast of deat Weighed Wrap Cost of Catal (WACCI WACC 11.25% >>> 2 3 Project A ($750) ($200) ($75)| $300 $500 $700 $800 ($125) Project B ICE ($750) $225 $240 $395 $400 $300 $200 SO Project NPV Calculations: Formulas NPVA #N/A NPVB #N/A Project IRR Calculations: IRRA #N/A IRRB #N/A | Project MIRR Calculations: MIRRA #N/A WHY do we use MIRR for project A? The Butler-Perkins Company (APC) must decide between two mutually exclusive projects. Each costs 87,500 and has an expected life of 5 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions: Expected Life Low to Average Husk Projects - Presets Rug WACC AS 11% Rollowing Req WACC: Project A i LOW to AVERAGE Project B is a RISKY project Cash Probability (cal 1) Now Prodcr CF-Pop Ann Protect-tap Cah Flow Pruber Ann CFA 2 2. WILKI expected annual cash flow? Sid Deviation Coel equals SORT equals 5D/Exp Ann CF MIV/! Cael Var VIVO! Project: Project B: For project A Calculate the Nis Adjusted NPV fer V Project B to. Band on the riuk-adjusted NPVs, which project should