What is the break-even salvage value of project

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1. A project in Malaysia costs $6,000,000. Over the next four years, the project will generate total operating cash flows of $3,500,000, measured in today’s dollars using a required rate of return of 14 percent. What is the break-even salvage value of this project?

2. Apple Inc. currently issues bonds that yield 9%. Its stock has a beta of 1.5, and the return on S&P 500 stock index is about 10%. T-bill rates are 3%. Apple’s target capital structure is 30% debt and 70% equity. If Apple is in the 35 percent tax bracket, calculate its WACC (weighted average cost of capital)?

Reference no: EM131920884

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