uses the discounted-payback rule, will 2. Payback Consider the following projects: Will it turn down any positive-NPV projects? I ai mulat to sign fameim off Project Co tewoll dano uniwollol and hiw joojong s isbigno) Salun Salt C1 Cash Flows ($) D -1,000 C2 +1,000 C3 C -2,000 +1,000 OOS 0 CA -3,000 +1,000 0 C5 +1,000 +1,000 +4,000 0 +1,000 0 1824 (ii) :RSI- (in) .poe- (1) :951 tosjong or ai atedmun gniwolfol arti to doidw d 0 +1,000 +1,000 a. If the opportunity cost of capital is 10%, which projects have a positive NPV? (vi) +1,000 b. Calculate the payback period for each project. Sei Isliqso lo teoo wlinunoqgo ondT .. ism woll .s In preparation prepared some pro Total Assets 208.000 Total Equity 20% Interest Paid 12/000 Other Expenses 400 000 Total Revenues 420,000 1. First calculate the proportions (absolute and in %) of Equity and Debt, the total net income, the return on total assets and the average rate of interest paid by the Company 2. Determine the Return on Equity using the Leverage Model. Calculate the new ROE assuming that the required investment (50,000) will be totally financed by equity (is nice of new shares) and the overall return on assets will not be affected 4 Explain the effects on ROE t the required inve ment will be totally debt financed (assuming that the ROA will not change and the Chocofinger LTD, has to pay 6% 10 get the required out financing Explain the mechanism called the Leverage - effect, In particular indicate advantages and disadvantages of a high leverage. Comment on the following sinement . Debt financing always negatively affects the returns because the company using debt hast to pay additional interest." Need the answer? Get it - with an explans . 4535 tutors onime, Answers in as fast as 15 minutes 13 bcBook Air esc % Q W E R tab T A S lock D F G C V