What is the net present value of this investment

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1. A farmer does a certain crop. It costs $240 000 to buy the seed, prepare the ground, and so the crop. in one year's time it will cost $93,200 to harvest the crop. if the crop will be worth $350,000, and the interest rate is 7%, what is the net present value of this investment?

2. GHJ Inc. is investing in a new project of $16 million. It will raise $4 million of bonds, $4 million of preferred stock, and $8 million of new common stock. If the after-tax cost of debt is 6%, cost of preferred stock is 10%, the cost of retained earnings is 16%, and the cost of new common stock is 19%, what is the WACC?

Reference no: EM131980550

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