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Please write the formulas on how to find these answers, witout excel spread sheet 2 . Your firm has a project opportunity with the following
Please write the formulas on how to find these answers, witout excel spread sheet
Your firm has a project opportunity with the following cash flows: $ in Year $ in Year $ in Year $ in Year and $ in Year Your firm's WACC is What would be the IRR of the project?
A
B
C
D
E There is not enough information to answer this question.
Please use the following information to answer the next TWO questions.
A new electronic process monitor costs $ This cost could be depreciated at per year CCA Class The monitor could be sold for $ at the end of five years. The new monitor would save the firm $ before taxes in annual operating costs for the five years. There would be no impact on net working capital. The firm's weighted average cost of capital is and the corporate tax rate is
What would be the NPV of purchasing this system?
A $
B $
C $
D $
E $
How would the NPV of purchasing the monitor change if we were to use a higher CCA rate for example, instead of
A The NPV of purchasing the monitor would decrease.
B The NPV of purchasing the monitor would increase.
C The NPV of purchasing the monitor would not be affected.
D There is not enough information to answer this question.
E None of the above.
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