The OMEGA Corporation has been presented with an investment opportunity that will yield cash flows of $60,000 per year in Years 1 through 4, $70,000 per year in Years 5 through 9, and $80,000 in Year 10. This investment will cost the firm $300,000 today, and the firms cost of capital is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? a. 5.23 years b. 4.86 years c. 4.00 years d. 6.12 years

INIWANKA Inc. is considering an investment that has a positive net present value based on its 16% hurdle rate. The internal rate of return would be

A. Zero C. More than 16%

B. 16% D. Less than 16%

AURA company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. rd = 6% Tax rate = 40% P0 = P25 Growth = 0% D0 = P2.00

a. 6.0% b. 6.2% c. 7.0% d. 7.2%

Which class of leverage causes earnings before interest and taxes to be more sensitive to changes in sales? A. Credit. B. Financial. C. Operating. D. Intrinsic.