Question
Tamarisk Inc. now has the following two projects available: Project Initial CF After-tax CF 1 After-tax CF 2 After-tax CF 3 1 -11,119 5,050 5,825
Tamarisk Inc. now has the following two projects available:
| Project | Initial CF | After-tax CF1 | After-tax CF2 | After-tax CF3 | |||||
| 1 | -11,119 | 5,050 | 5,825 | 9,100 | |||||
| 2 | -3,104 | 3,550 | 2,950 |
Assume that RF = 4.6%, market risk premium = 10.1%, and beta = 1.3. Use the EANPV approach to determine which project(s) Tamarisk Inc. should choose if they are mutually exclusive. (Round cost of capital to 2 decimal places, e.g.17.35% and the final answers to 0 decimal places, e.g. 2,513.)
| PMT1 | $
| ||
| PMT2 | $
|
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
