waccsolution

waccsolution - Year 1 Year 2 Revenues 15 15 Deprec 5 5 Tax...

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Year 0 Year 1 Year 2 Year 3 Revenues 10000000 10000000 10000000 Oper Exp 5000000 5000000 5000000 Deprec 1666666 1666666 ### Interest 200000 200000 200000 Tax Payment 1253333.6 1253333.6 ### 3546666.4 3546666.4 ### Investment -5000000 Loan 2000000 Debt Payment -2000000 Cash Flows -3000000 3546666.4 3546666.4 ### IRR 93% > 20% = MARR = Cos Year 0
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Unformatted text preview: Year 1 Year 2 Revenues 15 15 Deprec 5 5 Tax Payment 4 4 #REF! #REF! Investment 10 Cash Flows-10 11 11 IRR = 73% % Cost After Tax Cost Debt 0.4 0.1 0.06 k= 0.14 Equity 0.6 0.2 0.2 st of Equity pre-tax after-tax WACC debt 50 10 6 3 equity 50 15 15 7.5 WACC = 10.5 MARR = WACC...
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This note was uploaded on 03/11/2010 for the course CEVE 322 taught by Professor Segner during the Spring '10 term at Rice.

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waccsolution - Year 1 Year 2 Revenues 15 15 Deprec 5 5 Tax...

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