Question: Please help will only upvote if correct Answer all parts hopefully thats better ! over and give me your opinion- Yous open the roport and

Please help
will only upvote if correct
Answer all parts
Please helpwill only upvote if correct Answer all parts hopefully thats better
hopefully thats better ! ! over and give me your opinion- Yous open the roport and

over and give me your opinion- Yous open the roport and find the following estivnates (n millons of tollars) departenent recommended for financial reportng purposes. CRA allows a CCA rain of 30% on the equipment for tax purposes. The report conctubio that because the project will increate oarnings ty occepted. Finaly. you know that accounting eamings are not the right eting to focus ofl. b. If the cost of copital for this project is Bsi, what is your entimate of she value of the new project? b. If the cost of captal for this project is 8%, what is your esimate of the value of the nere projoct? Value of project =$ militon (Round to three decimal places.) You are a manager at Norbeen Fibre, which is considering expanding st operations in synthebic fibre manufacturing, Your boss comen into your office, drops a consulants teport on your desk, anil orir and give me your opinion:" You epen the repert and find the following estimales (in milions of dollars); Al of the eatimatas in the report teem correct. You note that the consultants used stnight-ane depreciaton for the naw equigenent that wil be purchased today (year of. Which is what the accouniing 54.300 milen per yea for ten years, the project is worth $4303 milion. You terro bock to your glory diys in tinance class and ealife tiere is more work to be done! Find you note that the consultants have not factored in the fact that the project will roquire 510 milion in working captal up front feoc 0 , which will be fully recovered in year 10 . Next you see they accepted. Finaly. you know that accounting eamings ave not the right thing to focus ont 2. y the cost of capital for this project is 8%, what is your estimate of the value of the new peoject? D. it the cost of cepital for this project is ash, what is your astimate of the value of the new peoject? Value of project =s milian (Round to three decinal plsces.)

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