Suppose the company in #1 is considering the following expansion projects. How would you calculate the required rate of return to use in the NPV analysis of the following: Explain.
(a) The company is considering an expansion to double the production of its current product. The company will issue either equity or debt (but not both) to pay for the expansion.
(b) The company is considering adding a new product in a different line of business that is unrelated to their current product.