1. KIMEP Company has the following incremental cash flows for its new project:
1) Should KIMEP Co. accept or reject this project at an adjusted WACC of 6% or 8% or 10%?
2) At what adjusted WACCs will the company accept this project? Hint: Find the IRR of the project and use it as the maximum adjusted WACC for accepting the project.
3) What is terminal Value if Growth rate of cash flow was 5%?
4) What is firm value if KIMEP has some assumption as follow?
Total Number of shares: 1,000,000
Total capital structure: 4,000,000
Debt/ Equity: 0.7
Cost of equity: 10% WACC: from answer 1) and 2)