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User Initial layout ( 4 5 , 0 0 0 , 0 0 0 . 0 0 ) additional funding in net working capital (
User Initial layout additional funding in net working capital additional capital expenditure life of project years salvage value depreciation DV per year payback period years tax rate The company estimates that the investment will generate revenue of $ million and $ million in the first years. This is followed by revenue of $ million in Year and the revenue will increase by per year thereafter until Year The variable costs are estimated at for the first two years and will increase to in the thereafter till Year The project will incur $ million per annum in fixed costs fixed costs include coupon payments to bondholders market data: last dividend pd growth rate Coupon Bonds: $ coupon bonds outstanding with years to maturity redeemable at a par value of $ The coupon bond isselling at of par; The bond makes semiannual payments ZeroCouponBonds: $; years to maturity and redeemable at a par value of $ The zerocoupon bonds are selling at of par. Equity: ordinary shares, selling for $ per share Nonredeemable preference shares: shares par value $ per share with dividends after taxes selling for $ per share. Compute the Weighted Average Cost of Capital WACC of EquipMed. Show all you workings. Also compute a Net Present Value NPV b Internal Rate of Return IRR c Profitability Index PI d Payback Period e Discounted Payback Period
User
Initial layout
additional funding in net working capital
additional capital expenditure
life of project years
salvage value
depreciation DV per year
payback period years
tax rate The company estimates that the investment will generate revenue of $ million and $ million in the first years. This is followed by revenue of $ million in Year and the revenue will increase by per year thereafter until Year
The variable costs are estimated at for the first two years and will increase to
in the thereafter till Year
The project will incur $ million per annum in fixed costs fixed costs include
coupon payments to bondholders
market data: last dividend pd growth rate
Coupon Bonds: $ coupon bonds outstanding with years to maturity redeemable at a par value of $ The coupon bond isselling at of par; The bond makes semiannual payments ZeroCouponBonds: $; years to maturity and redeemable at a par value of $ The zerocoupon bonds are selling at of par.
Equity: ordinary shares, selling for $ per share
Nonredeemable preference shares:
shares par value $ per share with dividends
after taxes selling for $ per share. Compute the Weighted Average Cost of Capital WACC of EquipMed. Show all you workings.
Also compute
a Net Present Value NPV
b Internal Rate of Return IRR
c Profitability Index PI
d Payback Period
e Discounted Payback Period
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