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Calculate the WACC for AP limited

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Reference no: EM133057524

Question - Suppose you are the manager of an FMCG company AP Limited. You need to evaluate the feasibility of project A. The details necessary for carrying out the evaluation are provided below:

Cash flow to be generated by the project each year for 15 years: 12 lakh

Equity raised for the project: 1 crore

Debt taken: 30 lakh

Cost of debt: 8%

Cost of equity: 14.7%

Cash flow after repaying the debt available for equity: 10 lakh

Calculate the WACC for AP limited.

Reference no: EM133057524

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