Expenses are expected to be 40 percent of revenues, and working capital required in each year is expected
to be 20 percent of revenues in the following year. The product requires an immediate investment of
$50,000 in plant and equipment.

a. What is the initial investment in the product? Remember working capital.

b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line
depreciation, and the firm's tax rate is 40 percent, what are the project cash flows in each year?

c. If the opportunity cost of capital is 10 percent, what is the project NPV?

d. What is the project IRR?

11.10 Find the WACC of William Tell Computers. The total book value of the firm's equity is $10 million; book value
per share is $20. The stock sells for a price of $30 per share, and the cost of equity is 15 percent. The firm's
bonds have a par value of $5 million and sell at a price of 110 percent of par. The yield to maturity on the bonds
is 9 percent, and the firm's tax rate is 40 percent.

Please see the attachments for the questions. Answers are to be completed in Excel

I have an excel spreadsheet where certain areas have been left blank and need to be computed in order to complete a research paper. However, I'm not sure how to do the calculations correctly. Please help. The areas highlighted in YELLOW need to be calculated. Thank you.

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
0 1 2 3 4
Project S -$1,000 $900 $250 $10 $10
Project L -$1,000 $0 $250 $$400 $800
The company's WACC is 10 percen

2. Assume a project has normal cash flows. All else equal, which of the following statements is correct?
a. The project's IRR increases as the WACC declines.
b. The project's NPV increases as the WACC declines.
c. The project's MIRR is unaffected by changes in the WACC
d. The project's

Midwest Water Works estimates that its WACC is 10.5 percent. The company is considering the following capital budgeting projects:
Project Size Rate of Return
A 1 million 12.0%
B 2 million 11.5%
C 2

A project has annual cash flows of $7500 for the next 10 years and then $10,000 each year for the following 10 years. The IRR of this 20-years project is 10.98%. if the firm's WACC is 9%, what is the project's NPV?

Moynihan Motors has a WACC of 10%. The firm is considering two normal, equally risky, but mutually exclusive projects. Project A has an IRR of 15%, while Project B has an IRR of 20%. Which of the following statements is CORRECT?
A. Both projects have a negative NPV.
B. Since the projects are mutually exclusiv

A. Calculate the NPV and IRR for each project. The company's WACC is 10%.
b. Assume only one percent can be undertakeen. Which project would you recommend and why would you?

Your division is considering two projects with the following net cash flows:
year Project A Project B
0 (25) (20)
1 5 10
2 10 9
3 17 6
a) What are the projects' NPVs,

Many firms use the weighted average cost of capital for the firm as the hurdle rate when comparing to IRR or as the discount rate in an NPV calculation. However, there is an implicit assumption being made when one does that. What problems can one encounter or what errors may occur if one uses the WACC for evaluating all projec

Rockmont Recreation Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a projected IRR can be less than the WACC (and even negative), in which case it will be rejected.
Year: 0 1 2 3 4
Cash flows: -$1,000 $250 $23