Calculate the required rate of return to use in npv analysis

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Reference no: EM13335602

Suppose the company in #1 is considering the following expansion projects. How would you calculate the required rate of return to use in the NPV analysis of the following: Explain.

(a) The company is considering an expansion to double the production of its current product. The company can issue equity or it can issue debt yielding 7% to pay for the expansion.

(b) The company is considering adding a new product in a different line of business that is unrelated to their current product.

Reference no: EM13335602

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