This is an undergraduate finance question. I have attached an Excel sheet with the complete problem from the book, my question is only about question 1, finding the after tax cost of only project A.
Marietta Corporation© BrainMass Inc. brainmass.com October 1, 2020, 8:39 pm ad1c9bdddf
For Cost of Debt, as its internal rate of return is the highest, we will assume that the company
uses the first part of the first-mortgage bonds issued at 9% selling at par for $50 million.
kd(1 - T)
0.09(1 - 0.40) = ...
This solution is comprised of a detailed explanation to find the after tax cost of only project A.