Question: course name system and project managment 7. US based ML7N Engineering company is currently at its target debt-equity ratio of 4:5. It is evaluating a

course name system and project managment

7. US based ML7N Engineering company is currently at its target debt-equity ratio of 4:5. It is evaluating a proposal to expand capacity which is expected to cost USD 4.5 million and generate after-tax cash flows of USD 1 million per year for the next ten years. The tax rate for the company is 25%. Two financing options are being looked at: (i) Issue of equity stock - The required return on the company's new equity is 18%. The issuance cost will be 10%. (ii) Issue of debentures carrying a yield of 12%. The issuance cost will be 2%. What is NPV of the expansion project? 8. What are the skills needed to become a technical project manager

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