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What are the financial ratios on both financing options

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Reference no: EM133001986

1.) If Li requires a rate of return of 6% on equity investment; what is the cost of capital of the project if she decides to keep a capital structure of 50-50?

2.) What are the following financial ratios on both financing options, considering the three case scenarios, and no growth?

a. Net Income

b. Total Cash Flows

c. ROE

d. Accounting and Financial Break-even Points

e. Payback Period

f. NPV

3.) Why should Li's decision be on this project?

Reference no: EM133001986

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