Independent of item 4 your company needs to raise capital


Independent of item 4, your company needs to raise capital to build an addition. The addition is 5% of your current total assets. What debt/equity mix is the best mix and why? Assuming the addition will increase cash sales by 7% and credit sales by 5% per year for the next 5 years, what will be your NPV using a WACC rate of 8%? Should this addition be accepted? If not, why and if not, how long will it take for the project to be accepted?

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Financial Management: Independent of item 4 your company needs to raise capital
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