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QUESTION:1[QUESTION BANK ID:269623]TYPE:MULTIPLE CHOICECORRECTWarnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. WACC:10.00%Year0123Cash flows-$950$500$400$300<< HIDE ANSWERSA$54.62B$57.49C$60.52D$63.54E$66.72QUESTION:2[QUESTION BANK ID:269485]TYPE:MULTIPLE CHOICECORRECTMarcos & Sons has no debt. Its current total value is $58 million. What will the company's value be if it sells $21 million in debt and has a tax rate of 34 %? Assume debt proceeds are used to repurchase equity.
<< HIDE ANSWERSQUESTION:3[QUESTION BANK ID:269627]TYPE:MULTIPLE CHOICECORRECTMoerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under certain conditions choosing projects on