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

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 more answer left before i run out of chances for the problem. i will upvote correct answers!!  i need the WACC for both: PROJECT S PROJECT L and

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!