It is often said that When it comes to Market Research, any information is good information. Is this a reasonable statement?

6. Bertelli's is analyzing a project with an initial cost of $55,000 and cash inflows of $33,000 a year for two years. This project is an extension of the firm's current operations and thus is equally as risky as the current firm. The firm uses only debt and common stock to finance their operations and maintains a debt-equity ratio of 35. The after-tax cost of debt is 6 percent and the cost of equity is 11 percent. The tax rate is 34 percent. What is the projected net present value of this project? A $2,501 B. $2,854 C $2,913 D. $3,011 BS3,418 7. A company has a project with an initial after-tax cash savings of $40,000 at the end of the first year. These savings will increase by 9% annually. The firm has a debt equity ratio of 1/3, a cost of equity of 16%, a cost of debt of 10%, and a 35% tax rate. The project is equal in risk to the current overall risk of the company. What is the present value of the project? A $321 906 B $343,938 C$355,800 D $357021 E $361,016