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Points) ABC company needs a capital of 100,000 dollars to invest in a project. The company provides $ 20,000 of the required capital by selling
Points) ABC company needs a capital of 100,000 dollars to invest in a project. The company provides $ 20,000 of the required capital by selling stocks that were sold for $ 50 two years ago; 30% of the capital is provided by selling bonds. The value of these bonds is $ 100 and will be paid at the end of 3.5 years. After the expenses were deducted from these bonds, an income of $ 70 was obtained per bond. 10% of the capital was obtained from banks with an interest rate of 9%. The remaining capital is derived from previous year's profits. Calculate the capital cost of this project if the current price of the shares is $ 54.16 and the company shares a profit of $ 1 every 6 months. Comment on which MARR value should be used in this project?
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