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QUESTION 7 A new two-lane highway needs to be built accross wester China into Kazakhstan at an estimated first cost of $80,000,000 The consortium of
QUESTION 7 A new two-lane highway needs to be built accross wester China into Kazakhstan at an estimated first cost of $80,000,000 The consortium of companies have two options: The first requires an investment of 70% equity funds at 9% and a loan for the balance. The second option requires only 5% equity funds at 996 while the balance would be an international loan. The consortium of cooperating companies decided that the WACC must not exceed the 5-year historical average of 10% per year. what is the maximum acceptable loan interest rate for each financing option? Option 1: Option 2: Round your answers to the nearest tenth of a percentage point and include the percent sign in your
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