Question: QUESTION 3 nt to do a new project risk is geaer tan the risk ofthe frmi which of de following? A fimi as considering t,
QUESTION 3 nt to do a new project risk is geaer tan the risk ofthe frmi which of de following? A fimi as considering t, based os methods for aiwessng risk. In evaluating wenect weldbe fs a Increase the estimated IRR of the propect to reflect its greates tisk b Increase the estimated NPV of the project to reflect its greater risk G d Ignore the cost of capital used to evaluate the project to a small fiaction of the famis total assets risk dafferential if would to only e Reject the project since its acceptance would increase the firmi's risk. QUESTION 4 Kasper Film Co is selling off some old equpment it no longer seeds because its associated project has come to an end The equpment origaally cost S22,500 of whach 15' has been depreciated The firm can sell the used equipment today for $6,000, and its tax rate is 40ea. What is the equipments after-tax salvage value for use in a capital budgetag analynis? Note uut d de eRapment wasket value is less than its book value, the firm will receive a tax credit as a restit of the sale. a S6.450 b $5.850 So, 143 d $5,558 e $6.772 m a a 00 e earch right here
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