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Please answer in Excel Format Shinra Electric Power Company is evaluating a project and has come up with the following potential sets of cash flows
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Shinra Electric Power Company is evaluating a project and has come up with the following potential sets of cash flows under ten different scenarios. Its cost of equity and debt are 15.5 percent and 6.1 percent, respectively. The company's tax rate is 31 percent. Using market values, its equity multiplier is 5. 1) What is the company's WACC? 2) What is the best case NPV in dollars? 3) What is the worst case NPV in dollars? SHOW YOUR WORK Year 0 1 2 Cash Flows from Assets Scenario 1 Scenario 2 (90,000) (81,000) 9,000 19,000 26,000 31,000 29,000 23,000 13,000 18,000 27,000 18,000 33,000 8,000 5,000 10,000 mt inom Scenario 3 (83,000) 9,000 29,000 17,000 29,000 30,000 12,000 20,000 Scenario 4 (79,000) 12,000 24,000 10,000 31,000 25,000 18,000 20,000 Scenario 5 (74,000) 27,000 6,000 25,000 11,000 33,000 30,000 22,000 Scenario 6 (79,000) 27,000 29,000 7,000 32,000 14,000 29,000 6,000 Scenario 7 (73,000) 9,000 22,000 31,000 28,000 11,000 14,000 19,000 Scenario 8 (73,000) 21,000 12,000 25,000 13,000 8,000 7,000 18,000 Scenario 9 (73,000) 9,000 33,000 27,000 23,000 30,000 14,000 25,000 Scenario 10 (78,000) 6,000 5,000 6,000 25,000 13,000 20,000 21,000Step by Step Solution
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