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Suppose you derived the following information on the Private cash ows of a farming project. Year 0 1 2 3 4 5 Market Cash Flow

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Suppose you derived the following information on the Private cash ows of a farming project. Year 0 1 2 3 4 5 Market Cash Flow Before Financing -5500 2000 2000 2000 2000 2000 Debt Financing 3000 -1225 -1225 -1225 -1225 -1225 Private Net Benefit -2500 775 775 775 775 775 If the debt-to-equity ratio is 40:60, complete the following: The IRR on the Market is : The IRR on the Debt is: The IRR on Equity is: Provide your answers to two decimal places. Do not include %. Suppose you have the following information: Item Initial Cost Life Building $ 45,000.00 30 Computers 95 6,000.00 2 Machinery $ 60,000.00 5 Total $ 111 ,000.00 The annual depreciation percentage for machinery is: Note: Provide your answer in percentage form (eg. an result of 1 7.66% should be entered as 17.66) to 2 decimal places. Do not include a "$" or "%" in your answer. Consider a 27% ad valorem tax on shoes. If the before tax price of shoes is $122, the after tax price of shoes is: Provide your answer to 2dp. Do not include a $ in your answer. Suppose you are considering the project below which is priced in real terms (i.e. the cashows exclude inflation over time). If the nominal cost of capital is 11.3% and the inflation rate is 5%, the nominal NPV of the project is: Provide your answer to two decimal places. Do not include "3i"

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