1. Micro Spinoffs, Inc., issued 20-year debt a year ago at par value, with a coupon rate of 9% paid annually. Today, the debt is selling at $1,050. If the firm's tax bracket is 30%, what is its after-tax cost of debt? (Round your answer to 2 decimal places.)
2. ECONOMIC ANALYSIS: Given the CAPEX is $10,000,000, annual OPEX of $400,000, discount rate of 10%, oil price of $40/STB, determine (a)project life; (b)NPV; (c)Payback and Discounted Payback Periods; (d)PI; (e)if the oil price is not constant but follows a normal distribution N(40,5), perform Monte-Carlo Simulation to determine EMV.