calculate wacc and rate of return, Accounting Basics

Assignment Help:

Calculate WACC and Rate of Return

Capital Structure:

50% debt and 50% equity financing
Current cost of debt is 2% above prime (Prime is currently 2.5%)
cost of equity is estimated to be 20%
Marginal tax rate is 37%

Investment:

Equipment that costs $850,000
Installation Fees of $10,000
Updates every year $2,000 (assuming they dont need a update until the end of the first year)

My work:
Capitalizing on the equipment, we have $860,000

 

 

Please help me in this Assignment, Expertsmind Experts need ypus Assistance


Related Discussions:- calculate wacc and rate of return

History of accounng, application/realization in history of accounting

application/realization in history of accounting

I, what are the internal sources of accounting?

what are the internal sources of accounting?

Show transactions affecting the income statement, Q. Show Transactions affe...

Q. Show Transactions affecting the income statement? To continue to exist a business must be profitable. This signifies that the revenues earned by providing goods and services

Determine the symbols of net sales for the period, Determine the symbols of...

Determine the symbols of Net Sales for the Period -    Cost of Goods Sold =    Gross Profit -    Operating Expenses +    Other Income -      Other Expenses =

Assume tc stands for total cost, 1. Fill in the table below.  Assume TC sta...

1. Fill in the table below.  Assume TC stands for Total Cost, TFC as Total Fixed Cost, TVC as Total Variable Cost, ATC as Average Total Cost, AFC as Average Fixed Cost, AVC as Aver

Suspense account, The book of Deven Verma could not be tallied. The account...

The book of Deven Verma could not be tallied. The account transferred the difference of Rs. 1.270 in the suspense account on the debit side. the following mistakes were found later

Show earnings per share, Q. Show Earnings per share? Earnings per-share...

Q. Show Earnings per share? Earnings per-share amounts are based upon the weighted average number of common as well as common equivalent shares outstanding during the year. Com

Career in taxation, A career in taxation is by no signifies limited to publ...

A career in taxation is by no signifies limited to public accounting. for the reason that there are so many types of taxes impacting so many aspects of our lives tax specialists ac

Ledger, basic problems about ledger

basic problems about ledger

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd