Cost of Equity: Use the Capital Asset Pricing Model to compute the required rate of return for QAN’s equity. 3. Cost of Capital: Use the capital structure information you obtain to compute the weighted cost of capital for QAN. Comment on your results in less than 50 words. 4. Project Evaluation: Using the information in the background section, conduct a rigorous capital budgeting analysis and comment on the feasibility of Qantas’ the 10-year upgrade plan. Make sure to include your analysis on project cash flows for year 0 to year 10. Keep in mind, as there is no disposal of the aeroplanes in year 10 you do not need to deal with salvage value or gain/loss on sale for the new planes. Presentation: Presentation matters, and therefore you will be deducted points for poor presentation quality. I don’t need anything fancy, just a pdf or word file that is well organized, and easy to follow. 

Please avoid lengthy and unnecessary description, e.g., spend a paragraph discussing the definition of CAPM or WACC.

Answer rating: 100% (QA)

Cost of equity ke Rf Beta Rm Rf Where Rf Risk free interest Rm Market risk premi... View the full answer