Should the project be accepted under mirr decision method

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Reference no: EM132058765

1. The project has projected cash flows as follows. The cost of capital (k) is 10% and the payback period is 2.8 years. Should the project be accepted under the mirr decision method?

Year. Cash flow

0. -100,000

1. 40,000

2. ??

3. 50,000

2. Take it All Away has a cost of equity of 10.90 percent, a pretax cost of debt of 5.51 percent, and a tax rate of 35 percent. The company's capital structure consists 74 percent debt on a book value basis, but debt is 40 percent of the company's value on a market value basis. What is the company's WACC? Please show work.

Reference no: EM132058765

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