Question: com HM 100%Final x6 Case 2: (10%) 5 questions OneWeb - the global communications network, has announced that a high throughout satellite conect platform will

 com HM 100%Final x6 Case 2: (10%) 5 questions OneWeb -
the global communications network, has announced that a high throughout satellite conect
platform will provide broadband Internet to remote and hard-to-reach rural communities in
Kazakhstan by building a ground station to connect to OneWeb's Low Earth
Orbit satellites New equipment will be directly delivered from the UK. The
CFO of OneWeb was asked to calculate NPV of the project requiring

com HM 100%Final x6 Case 2: (10%) 5 questions OneWeb - the global communications network, has announced that a high throughout satellite conect platform will provide broadband Internet to remote and hard-to-reach rural communities in Kazakhstan by building a ground station to connect to OneWeb's Low Earth Orbit satellites New equipment will be directly delivered from the UK. The CFO of OneWeb was asked to calculate NPV of the project requiring $200 min of initial investments with use of own equity and attracted debt financing in 2021 The project will generate $30 mln each year after the commissioning date in 2022 till the end of expiration of state license provided only for 20 years. According to the U.S. Treasury Department 10 years and 20 years Treasury bills rates are at 1.69% and 229% respectively. Market return is 6% Relevered Damodaran's beta for Telecom & Communications industry is 1.34 Duff & Phelps Size Premium - 1 80%. The Country Risk premium according to Damodaran - 3.71%. Taking into account the potential devaluation risk the Currency risk premium is determined as 2% for Kazakhstan, Market D/E ratio for Software companies is 0.08, while for Telecom & Communications companies is 0.44. Los tema non-banking legal entities is 5.4% National Bank of the Republic of Kazakhstan). Corporate income tax - 20 (Tax Code of the Republic of Kazakhstan). Please determine the following by detailed explanation w Question 21 What is the D/E of the Company? O 0.08 O 1.34 O 0.44 O 0.20 2 pts D Question 22 What is the cost of equity? 2.3% 14.89 100% Final 6 Question 22 What is the Cost of equity? 0 23% 14.8% 0 73% 10.5% Question 23 What is the after-tax Cost of debt? 1.79 Question 23 What is the after-tax Cost of debt? O 1.796 O 4.3% O 5.4% O 9.796 Question 24 What is the weighted Average cost of Capital (WACCH? 12.4% W What is the weighted Average Cost of Capital (WACC)? O 12.4% O 10.2% O 19.5% O 7.390 Question 25 What is the NPV of the project? 20 min W 19:53 0 733 Question 25 What is the NPV of the project? 20 min 13 min 42 min 52 min Caen 3. (10%) 5 questions

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