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solve ASAP please give correct answer 10.40 Mrs. Mckay's Nutrition Products has different methods by which a $600.000 project can be funded using debt and

solve ASAP please give correct answer

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10.40 Mrs. Mckay's Nutrition Products has different methods by which a $600.000 project can be funded using debt and equity capital. A net cash flow of $90,000 per year is estimated for 7 years. Financing Plan, % Type of Financing 1 2 3 Cost per Year, % Debt 20 50 60 10.0 Equity 80 50 40 7.5 Determine the rate of return for each plan, and identify the ones that are economically acceptable if (a) MARR equals the cost of equity capital, (b) MARR equals the WACC, and (c) MARR is halfway between the cost of equity capital and the WACC. (d) Do the decisions for the three financing plans support the fact that a highly leveraged project is more likely to be acceptable in that the rate of return on equity capital is higher? Explain the basis of your

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