week 5 finance.xlsx - Student Name Amanda Hernandez Date...

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Student Name: Amanda Hernandez Date: 5/8/2019 Week 5 Chapter 10 Question #1 Payback = C/ATB= Payback = $45,000/$2,000= 22.5 years Question #3 WACC: Owners’ equity + amount financed = Total amount paid $40,000 + $160,000 = $200,000 Equity proportion = Owners equity/Total amount paid= $40,000/$200,000= 0.20 Debt proportion = Amount financed/Total amount paid= $160,000/$200,000= 0.80 WACC = (Equity cost) (Equity proportion) + (Debt cost) (Debt proportion) = (0.04) (0.20) + (0.08) (0.80) =0.0720, or 7.20% Question #5 Question #7 Part A PVB = $15,000 (4.8684) = $73,026 PVB = Annuity (PVAF)

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