Table 4.1 Component Cost 31-Dec-2022
	Effectvie Tax Rate	12.96%
	Yield to Maturity	3.43%
	Before Tax Component	3.43%
	After Tax Componet	0.03%
	Cost of Prefered Stock	0
	Table 4.2 CAPM Cost of Equity 31-Dec-2022
	beta	0.82
	Risk free Rate	0.91%
	Market Rate premium	6%
	Cost of Equity	6.20%
	Table 4.3 Bond Yield Plus Risk Premium
	Cost of Debt	0.03%
	Risk Premium	4%
	Cost of Equity	4.03%
	Table 4.4 WACC Market Based Captial Structure
	Effective Tax rate	13.69%
	1-Effective Tax Rate	86.31%
	Market Value Debt	$16,309
	Market Value Prefered Stock	0
	Market Value Common Equity	$239,489
	Market Weight Debt	6.38%
	Market Weight Prefered Stock	0
	Market Weight Common Equity	93.62%
	Cost of Debt	0.03%
	Average cost of Equity	6.20%
	WACC	5.86%

6) Capital Budgeting Analysis - Using the WACC obtained from in Step (4) as the discount rate for this project, apply capital budgeting analysis techniques (NPV, IRR, MIRR, PI, Payback, Discounted Payback) to analyze the new project. - Perform a sensitivity analysis for the effects of key variables (e.g., sales growth rate, cost of capital, unit costs, sales price) on the estimated NPV or IRR in order to demonstrate the sensitivity of the model. The Scenario analysis of several variables simultaneously is encouraged (but not required). A document Sensitivity Analysis using Data Table in Excel is provided for the introduction of the Data Table function in Excel. - Discuss whether the project should be taken and summarize your report.

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6 Capital Budgeting Analysis Using the WACC of 586 from Table 44 as the discount rate NPV Net presen... View the full answer