Question 4 4 pts AU.S. firm is interested in acquiring a Malaysian company in the electronics Industry. Suppose the U.S. and Malaysian markets are segmented. Let M$ stand for the Malaysian currency, Ringgit. Information relevant to the cost-of-capital calculations are as follows: U.S. Market (5) Malaysian Market (MS) Assume UIP holds. What is the cost of capital in US$ to Malaysian Investors? 12.3% 16.25 14.5% 15.4% Next Previous Question 6 4 pts Consider a project with the following data: The 5-year project requires equipment that costs $80,000. If undertaken, the shareholders will contribute $20.000 cash and borrow $60,000 with an interest-only loan with a maturity of 5 years and annual interest payments. The equipment will be depreciated straight-line to zero over the 5-year life of the project. There will be a pre-tax salvage value of $3,200. There are no other start-up costs at year 0. During years 1 through 5, the firm will sell 20,000 units of product at $5; variable costs are $2; there are no fixed costs. robe 8%, 20%, tax rate 30% debt-to-equity ratio - 3. ry - 2% OCF -- 80,000 OCF-4 -20,000 (5-2)*(1- 30%) + 16,000 * 30 % -46,800 OCF-46,800 + 3,200 - 50,000 What is the NPV of the project using the WACC methodology? $58,028.68 $89,613.03 $97,108.16 $103.155.75 Next Previous