Question: i need the WACC for both: PROJECT S PROJECT L and whether it is acceptable or not. only one project is acceptable. i have one
Over-the-Top Canopies (OTC) is evaluating two independent irvestments. Project 5 costs $140,000 and has an IRR ehual to 9 percent, and Project I costs $130,000 and has an 1RR equal to B percent, OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are ref =4%,rk=10%, and rs=12.5%. If orC expects to generate 5200,000 in retained earnings this year, which project(s) should be purchased? Round your answers to one decimal place. Over-the-Top Canopies (OTC) is evaluating two independent irvestments. Project 5 costs $140,000 and has an IRR ehual to 9 percent, and Project I costs $130,000 and has an 1RR equal to B percent, OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are ref =4%,rk=10%, and rs=12.5%. If orC expects to generate 5200,000 in retained earnings this year, which project(s) should be purchased? Round your answers to one decimal place
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