question 24

QUESTION 24 Wilson Co. is considering the two mutually exclusive projects. Project A has an expected life of 2 years and Project has an expected life of 4 years. The Cost of Capital is 7%. Year Project A Cash Flows $12,000 $9.000 $9,000 Proiect Cash Flows -$10.000 $5.200 $5.200 $5.200 $5,200 ? What is the Difference in the Equivalent Annual Annuity (EAA) between Project A and Project B (EMA-EM O -$174.88 O $161.96 $115,18 $167.03 QUESTION 25 - Delta Airlines has 10,000 Bonds Outstanding with a $700 Current Market Price. The YTM of the Bonds is 5% - The Firm's Tax Rate is 20%. - The Company's 100,000 Shares of Preferred Stock Outstanding pay a $3 Annual Dividend and fall for $30 Per Share - Delta's 400.000 Shares Outstanding have a Current Price of $100.00 and are expected to grow at a Constant Fate of 10%. The Expected Dividend (1) is $2.00. What is the m an Save Al Answers 89 A Q 2 = MacBook Air S