Solution-Project weighted-average cost of capital

Project weighted-average cost of capital

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Reference no: EM133116414

A project has an initial cost of $45,000. The incremental inflows associated with the project are $20,000 in year 1, $15,000 in year 2, $10,000 in year 3 and $8,000 in year 4. All cash inflows are at the end of the year. The appropriate discount rate for this project is 8.0%. The component costs of capital and their weights are given below:

What is the project's weighted-average cost of capital?

Reference no: EM133116414

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Project weighted-average cost of capital

Reference no: EM133116414

Reference no: EM133116414

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