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Unformatted text preview: Borrowing received at time period zero is $2,000,000 Loan is payable in full at end of year 3 Equity capital cost is 20% What is WACC? What is MARR? Is investment acceptable? 4. Revenues are $15,000,000 per year for 2 years No expenses Investment at time period time zero is $10,000,000 Tax rate is 40% Financed 50% debt at 10% and 50% equity at 15% What is WACC? What is MARR? Is project acceptable?...
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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.
- Spring '10