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STUDENT ID NUMBER 27. Using a cost of capital of 12%, determine the net present value for a project that costs $104,000 and would yield
STUDENT ID NUMBER 27. Using a cost of capital of 12%, determine the net present value for a project that costs $104,000 and would yield after-tax cash flows of $16,000 the first year, $18,000 the second year, $21,000 the third year, $23,000 the fourth year, $27,000 the fifth year, and $33,000 the sixth year. a. $194,238,86 b. $90,238.86 c. $13,761.14 d. $34,000.00 28. Determine the internal rate of return for a project that costs $98,000 and would yield after-tax cash flows of $23,000 for its estimated useful life of 6 years. a. 9.75% b. 8.72% c. 10.76% d. 10.88% 29. Determine the net present value for a project that costs $180,532.00 and is expected to yield after-tax cash flows of $25,000 per year for the first five years, $33,000 per year for the next five years, and $46,000 per year for the following five years. Discount rate is 12.36%. a. $191,045.2109 b. $206,404.16 c. $25,872.1556 d. $28,572.1565 30. A firm that is 40% bond financed and 60% equity financed requires information from you on their weighted average cost of cost of capital. The firm has debt capital from an issue of zero coupon bonds with five years to maturity, with par value at &1000 and market price of 735 (in a bond market that operates semi-annual compounding). Their stock is currently experiencing a constant growth of 5%, expected to pay Ghe 3 for its next dividend. The stock is currently priced at Ghy30. The average tax rate for the firm is 32%. The firm's WACC is a. 11.5% b. 10.7 c. 11% d. 15% Examiners: Godfred A. Bokpin; Lord K. Mensah; Vera O. Fiador; Lordina A. Amoah; Kwame Adom- 6 of 10 Frimpong
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