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Unformatted text preview: Net income before taxes Income tax 40% Net Income Working capital required each year40080010001000900 2Show the net cashflows for the project by year Capital investment Net Income Depreciation Change in working capital Net cash flow 1Using the Capital Asset Pricing Model (CAPM) determine expected return for investors of XYZ Company. 2 Calculate the Weighted Average Cost of Capital (WACC) using the CAPM calculated in 1 for the required rate of return for investors. Amount % total % 1  tax rate WACC 3 Calculate the Net Present Value (NPV) using the WACC calculated in 2 as the opportunity cost of capital 4 Calculate the Internal Rate of Return (IRR) for the project. 5 Should the Project be accepted?...
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.
 Winter '11
 STEVEJOSEPH

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