Question: 1) (PI) Compute the PI statistic for Project Q if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round

1)

(PI) Compute the PI statistic for Project Q if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project Q

Time

0

1

2

3

4

Cash flow

-$11,700

$3,700

$4,530

$1,870

$2,500

2) KatyDid Clothes has a $160 million (face value) 20-year bond issue selling for 101 percent of par that carries a coupon rate of 12 percent, paid semiannually. What would be Katydids before-tax component cost of debt? (Round your answer to 2 decimal places.)

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