Using market value and book value (separately), find the adjusted WACC, homework help

Anonymous
timer Asked: Jul 9th, 2017
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Question description

NEEDS TO BE DONE ON EXCEL.

FORMULAS MUST BE INPUTTED IN THE CELLS TO GET THE APPROPRIATE ANSWER, THE ANSWER ALONE WITHOUT THE WORK IS NOT ACCEPTABLE.

ONLY DO QUESTION 3


Instructions 1. You have three problems - one on each tab of this Excel file. 2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if 3. It is recommended to watch the assigned videos in week # 4. Total Points: 10 e feedback and partial credit (if appropriate). Calculate the NPV for each project and determine which project should be accepted. Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Rate NPV = Project A (105.000,00) 53.000,00 50.000,00 48.000,00 30.000,00 35.000,00 7% $75.228,32 Answer: Project B Refer to the Solved Example 9.2 on pg. 265 of your text. Project B (99.000,00) 51.000,00 47.000,00 41.000,00 52.000,00 40.000,00 10% $77.364,07 Project C (110.000,00) 25.000,00 55.000,00 15.000,00 21.000,00 35.000,00 13% -$2.531,00 Project D (85.000,00) 45.000,00 50.000,00 30.000,00 62.000,00 68.000,00 18% $69.006,08 Your company is considering three independent projects. Given the following cash flow information, calculate the pa If your company requires a three-year payback before an investment can be accepted, which project(s) would be acce Cost Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Payback Period Project D 205.000,00 53.000,00 50.000,00 48.000,00 30.000,00 24.000,00 Year 5 Answer: Project E 179.000,00 51.000,00 87.000,00 41.000,00 52.000,00 40.000,00 Year 3 Project E Refer to the Solved Example 9.1 on pg. 259 of your text. Calculations Year 1 Year 2 Year 3 Year 4 Year 5 -$152.000,00 -$102.000,00 -$54.000,00 -$24.000,00 $0,00 -$128.000,00 -$41.000,00 $0,00 $52.000,00 $92.000,00 Formulas Year 1 Year 2 Year 3 Year 4 Year 5 ng cash flow information, calculate the payback period for each. accepted, which project(s) would be accepted? Project F 110.000,00 25.000,00 55.000,00 21.000,00 9.000,00 35.000,00 Year 4 -$85.000,00 -$30.000,00 -$9.000,00 $0,00 $35.000,00 Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component Debt Preferred Stock Common Stock Balance Sheet Value 5.000.000,00 4.000.000,00 2.000.000,00 Refer to the Solved Example 7 on Page 334 of your text. Book Value Weights Debt Preferred Stock Common Stock Market Value 6.850.000,00 2.200.000,00 5.600.000,00 C, using 30% tax rate. Cost of Capital 8% 10% 13% TAX 30% ANSWER Market Value Weights Debt Preferred Stock Common Stock Adjusted WACC Market Value Book Value ANSWER Adjusted WACC

Tutor Answer

Cyrus_N
School: New York University

Find attached document containing the answer.

Instructions
1. You have three problems - one on each tab of this Excel file.
2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell.
The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if
3. It is recommended to watch the assigned videos in week # 4.
Total Points: 10

e feedback and partial credit (if appropriate).

Calculate the NPV for each project and determine which project shou...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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