12.8 You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is
$140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The
equipment falls into the MACRS 3-year class and w
9.2 Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year (that is, D1=$ 1.5 ).
The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, , is
15%. What is the stocks current
11.23 Your division is considering two projects. Its WACC is 10%, and the projects after-tax cash flows (in
millions of dollars) would be as follows:
1.
Calculate the projects NPVs, IRRs, MIRRs, regular paybacks, and discounted paybacks.
2.
If the two pro