- +44 141 628 6080
- info@tutorsglobe.com

Financial metrics for the capital budgeting project

Problem:

Calculate for the Strident Marks CFO, key financial metrics for this capital budgeting project. These key metrics must include payback period, net present value, internal rate of return and modified rate of return. Describe what each of these metrics tells us.

Key Financial Data for Strident Marks Project

Project's Discount Rate 10%

Time Period (in years)

O 1 2 3

Cash Out ($10,000)

Cash In $7,500 $7,500 $7,500

-Assume cash flows occur at the beginning of the period)

(year 1 cash flow occurs 12 months after the initial investment)

Now Priced at $20 (50% Discount)

Recommended **(99%)**

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment
## Q : What would the cost of equity change

What would if be if this company raises its debt ratio to 50%? What would its cost of equity change?