Watson, Inc., is an all-equity firm. The cost of the company's equity is currently 11.9 percent, and
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Watson, Inc., is an all-equity firm. The cost of the company's equity is currently 11.9 percent, and the risk-free rate is 3.5 percent. The company is currently considering a project that will cost $10.6 million and last six years. The project will generate revenues minus expenses each year in the amount of $3.1 million. If the company has a tax rate of 40 percent, should it accept the project?
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Srikanth Penugonda
Hi, I am Srikanth, I belong to Andhra Pradesh, India. My recent qualification is Bachelor of Technology in Mechanical Engineering and presently I am pursuing my Postgraduation in School of Materials Science and Engineering from National Institute of Technology, Calicut. When I was a student at High School I developed a deep love and respect for the subject called Mathematics because of a teacher named Suresh who used to teach us all the concepts of Mathematics by using the most simple techniques.Because of this I have a very good and vast knowledge in all the concepts of Mathematics and I can teach any of them. At first let me describe about my education (Especially related to Mathematics). In my 10th standard I secured 97% marks, in my intermediate(12th standard) I secured 96% marks, in my 1st year of Engineering I secured 96% marks, in my 2nd year(1st semester) of engineering I secured 76% of marks and finally in the 2nd year (2nd semester) I secured 97% of marks in Mathematics. Apart from this I also have a very good knowledge in all concepts of Mechanical engineering subjects and also in concepts related to nanotechnology.
Talking about my tutoring experience, when I was a student at high school, few of my friends who were not good in Mathematics and felt it as a difficult subject used to come to me and ask their doubts in study hours and I used to clarify them. I would like to share one more experience in my life, When I was an Undergraduate student, though I was from Mechanical Engineering background I had a lot of friends in the Department of Computer Science and Engineering. Many students from Computer Science Department felt Mathematics as one of the difficult subject. So to solve this problem we used to have a Group Discussion on every Sunday in which around 10 of my friends used to participate and I used to answer all the questions raised by them and clarify their doubts. Apart from this, since I am in my Postgraduation we have a program called Teaching Assistantship program in our course work, in this program every week we have to go and teach Undergraduate students. Thank You.
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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