hello Question 17 (2 points) Kingston Utilities is evaluating two projects. The first project has net after-tax

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Question 17 (2 points) Kingston Utilities is evaluating two projects. The first project has net after-tax cash inflows of $62396 per year starting at the end of year 1. The upfront cost of the project is $221000 and its expected life is 5 years. The board rejects the project becasue "the project's IRR is exactly 1% lower than our weighted average cost of capital". The second project has an initial cost of $165000 with the same expected life. Assuming project B has the same risk level as project A, what's the minmal required after-tax cash inflow of project B for the board to accept project B (i.e. for project B to break even)? The answer is 45449.02 The answer is 46585.25 The answer is 46017.14 The answer is 47732.13 Question 17 (2 points) Kingston Utilities is evaluating two projects. The first project has net after-tax cash inflows of $62396 per year starting at the end of year 1. The upfront cost of the project is $221000 and its expected life is 5 years. The board rejects the project becasue "the project's IRR is exactly 1% lower than our weighted average cost of capital". The second project has an initial cost of $165000 with the same expected life. Assuming project B has the same risk level as project A, what's the minmal required after-tax cash inflow of project B for the board to accept project B (i.e. for project B to break even)? The answer is 45449.02 The answer is 46585.25 The answer is 46017.14 The answer is 47732.13

Answer rating: 100% (QA)

The correct answer is 4601714 To solve this problem we need to find the minimal required aftertax ca... View the full answer