Answered step by step
Verified Expert Solution
Question
1 Approved Answer
zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $30, and fixed costs are $705,000
zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $30, and fixed costs are $705,000 per year. The tax rate is 22 percent. The required return from the equity investor and the debt investors are 15% and 4%, respectively. The debt-to-equity (D:E) ratio based on the market value is 1:2. Do not round intermediate calculations. What is the weighted average cost of capital? (Round your final answer to two decimals, e.g. 1.23 for 1.23%.) WACC % What is the base NPV? (Enter your final answer as integar without using 1000 separator, e.g., 1234.) NPV $ Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/10 percent. Calculate the worst-case NPV. (A negative answer should be indicated by a minus sign. Enter your final answer as integar without using 1000 separator, e.g., 1234.) Worst NPV ? zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $30, and fixed costs are $705,000 per year. The tax rate is 22 percent. The required return from the equity investor and the debt investors are 15% and 4%, respectively. The debt-to-equity (D:E) ratio based on the market value is 1:2. Do not round intermediate calculations. What is the weighted average cost of capital? (Round your final answer to two decimals, e.g. 1.23 for 1.23%.) WACC % What is the base NPV? (Enter your final answer as integar without using 1000 separator, e.g., 1234.) NPV $ Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/10 percent. Calculate the worst-case NPV. (A negative answer should be indicated by a minus sign. Enter your final answer as integar without using 1000 separator, e.g., 1234.) Worst NPV
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started