Question: Please help with steps 13. A project has a life of 4 years. The initial cash outlay is $550. The cashflows in years 1,2,3, and
13. A project has a life of 4 years. The initial cash outlay is $550. The cashflows in years 1,2,3, and 4 are $200, $150, $100, and $250 respectiyely. The WACC is 14.5%. What is the project NPV? What is the project IRR? What is the project payback period? Should the firm invest in this project? 14. A firm has $1,000 of debt outstanding, $200 of preferred stock outstanding, and $3,000 of stock outstanding. The debt has a maturity of 10 years, pays $50 annual coupons, a face value of $1,000 and trades at a price of $1,100. The preferred stock pays a $1 dividend and trades at a price of $12. The cost of stock is 12%. The tax rate is 20%. What is the firm's weighted cost of capital? 15. If a firm must forgo a cash flow, not leasing an owned building for example, in order to accept some investment project, are the lost cash flows included in the analysis
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