Project A Project B Initial Cost $115,000 $180,000 Cash Flows: Year 1 15,000 25,000 Year 2 25,000 70,000 Year 3 40,000 90,000 Year 4 30,000 30,000 If the project is amortized using the straight-line method, and Henry's Bean has a tax rate of 30%, what is the average accounting return for Project A? 11.66% 13.70% 33.5% None of the given solutions. 12.46% Question 5 (2 points) Sunrise Inc. has a capital cost structure of 36% debt and common equity of 64%. The after tax cost of debt is 6.0% and the cost of common capital is 11.0%. The company can buy equipment that would return 9% financed by debt or similar equipment financed by common capital returning 10%. What is the weighted average cost of capital for Sunrise Inc.? None of the given solutions. 9.66% 9.38% 8.22% 10.48% Question 7 (2 points) A bond issue maturing in 12 years has a par value (FV) of $200,000, and annual interest payment of $8,000. What is the current yield on the bond? 8.0% 4.0% Cannot calculate with the given information. None of the given solutions