Expert Answers

Capital Structure Weight (W) Yield (r)
Debt (d) 0.40 8.0
Common Equity (s) 0.60 16.0
Weight Sum 1.00
Tax Rate (T) 0.35
1) What is MT 217’s WACC, which will be used as the required rate of return for this project?

2) W hat is the IRR of the project?

 

3) What is the NPV of the project, based on the WACC (required rate of return)?