You are given the following data for year 1: revenue = 250, cash operating costs = 100, depreciation 40 and the tax rate of 40%. Calculate the after tax operating cash flow (OCF) for the project in year 1

Select one:

a.

$66

b.

$130

c.

$106

d.

$90

A company has cost of debt of 5% and cost of equity of 16%. In this country, the corporate income tax rate is 20%. If the company has target debt to total capital ratio of 60%, its WACC is closest to:

Select one:

a.

20.0%

b.

9.4%

c.

15.2%

d.

8.8%