DEN

[ad_1]

capital
400-600 words plus 1 excel spreadsheet
The director of finance has discovered an error in his WACC calculation. He did not factor in the tax rate when determining the cost of debt. UPC has a line of credit at 4% interest and the company is taxed at 30%. Further assume that UPCs required rate of return on equity is 14% and its capital structure is 40% debt and 60% equity. Additionally the budget committee question and answer session revealed that UPC has discovered a technology that will increase its product life span by 1 year. The new technology will add $120000 and $130000 to projects A and Bs initial capital outlay respectively. Further the finance department has determined that cash flows for years 1 2 and 3 will be unchanged. However net cash flows for year 4 will be $300000 and $150000 for projects A and B respectively.

The post DEN appeared first on Essay Conect.

[ad_2]

Source link

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp