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please give formulas as well for all questions and answers 59 60 1 B c D G H 52 Question 6a A music company is

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59 60 1 B c D G H 52 Question 6a A music company is considering creating the world's largest plano, Cost and cash flow details are listed below. 53 The company requires a 12% return on its capital. 54 $2,452,153 ) What is the present value of the yearly cash flows? (round to nearest dollar) Cost of Project52.500.000 55 Question 6bb) What is the net present value of the project? (round to nearest dollar) Yr 1 cash flow 300.000 56 Yr 2 cash flow (150.000 Yr 3 cash flow 50.000 57 58 Question 6c c) What is the internal rate of return of the project? (round to two decimal places) Yr 4 cash flow 250.000 Yr 5 cash flow 800,000 11.6996 Yr 6 cash flow 1.200,000 3.500.000 61 Yr 7 cash flow 6 points 62 63 64 65 Question 7a Two projects, Alpha and Beta, are being considered using the payback method. Each has an initial cost of $100,000 66 The annual cash flows for each project are listed below. 67 4.00 a) What is the pay back period in years for Alpha? (round to two decimal places) Year Project Alpha Project Beta 68 Question 7b b) What is the pay back period in years for Beta? (round to two decimal places) 25,000 15.000 69 2 25,000 25.000 70 3.50 3 25.000 45.000 71 4 points 4 25,000 30,000 72 5 25.000 20.000 73 6 25.000 15.000 74 75 76 77 Question 8 A fitness equipment manufacturer is capitalized with long-term debt, preferred stock and common stock. The amount 78 and cost of each capital source is in the table below. The cost of debt is the after-tax cost. 79 7.16% What is the firm's weighted average cost of capital? (round to two decimal places) 80 4 points Amount (S) Cost (%) 81 Long-term debt 800,000 4% 82 Preferred stock 350,000 5% 83 Common stock 3.900.000 8% 84 Total 5,050.000 85

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