Which project has a better payback period

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Which project has a better payback period? Project A requires a $25,000 investment and provides $5,000 per year for 6 years; project B requires an $8,000 project amd provides $4,000 per year for 2 years. Explain the strengths and weakness of this approach.

Assume that a not-for-profit company has $20 million of long term tax-exempt debt with an interest rate of 6.0%. The organization has $3 million unrestricted net assets, with an estimated cost of capital of 7.5% and $9 million in and endowment with an estimated

5.0% return on assets (cost of capital). What is its weighted average cost of capital. No word count, answers factual and concise, with references

 

 

Reference no: EM13862056

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