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Unformatted text preview: The tax rate is 40%. Weighted average cost of capital is 20%. The current machine was purchased three years ago. It has original cost of $50,000 and expected useful life of 5 years. It can be sold for $25,000 now. Using Capital budgeting to analyze this project. (the required payback period is 3 years) B) The information of 10 possible projects are provided. If the firm has the investment limitation at $1.5million, which project should be invested...
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This note was uploaded on 01/11/2012 for the course FINANCE fin 3701 taught by Professor Tengihla during the Spring '11 term at Assumption College.
- Spring '11