Assignment#5.docx - Manuel Otano Assignment#5 Florida...

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Manuel OtanoAssignment #5Florida National University 1.What is the payback if investment cost is $45,000 and the after-tax benefit is $2,000?
3.Joe Morton buys a piece of equipment for $200,000. He puts down $40,000 and finances $160,000. Joe’s opportunity cost is 4 percent, and the lender’s interest rate is 8 percent. Find the weighted average cost of capital (WACC).
5.If the 10 percent present value ordinary annuity factor (PVAF) is 8.5136 and the 11 per-cent, PVAF is 7.9633, a PVAF of 8.1234 correlates to an internal rate of return (IRR) of ________?
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