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Assuming that you are Guta, answer the following questions: 1. Calculate Dashen’s WACC using the data in Exhibit 1. 2. Calculate the project’s...

This question was created from Financial Management Assignment, Version-2 https://www.coursehero.com/file/23312216/Financial-Management-Assignment-Version-2/

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Assuming that you are Guta, answer the following questions:
1. Calculate Bashen’s WACC using the data in Exhibit 1. 2. Calculate the project’s cash flows using the data in Exhibit 2. Why is it important to take into
account the effect of inflation in forecasting the cash flows? Briefly comment.
3. Evaluate the profitability of the project with the NP‘J’, IRE, MIRB, simple payback period, and discounted payback period methods. is the project acceptable? Briefly explain. Why is
file may method superiorto the other methods of capital budgeting? Briefly explain. 4. Conduct the stand-alone risk analysis of fire project with the sensitivity analysis and scenario
analysis teclmiques. Explain why sensitiyity analysis and scenario analysis can be useful tools in the capital budgeting decision—making process when economic and financial
conditions are likely to change in the future.

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