Money to invest in all available positive-NPV products

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1. Explain the five steps used in NPV analysis.

2. What decision criteria should managers use in selecting projects when there is not enough money to invest in all available positive-NPV products? Provide an example.

3. Timco has EBIT of 100. This should continue forever. The tax rate is 40%. The cost of equity is 12%. Find the firm's value and the WACC if Timco adds 50 in 5% debt.

Reference no: EM131986185

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