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Foxen Sunday, November 27, 2016 05:32 AM

introduction to business finance, need help solving this , can anyone calculate it
 
Now assume that xyz company wants to make a capital expenditure of Rs.500,000. Your company has the following capital structure:
Debt = 40%; rd = 8%
Preferred Stock = 10%; rps = 9%
Common Stock = 50%; rs = 11.6%
Tax Rate = 30%
Initial Cost of the project P0= Rs. 500,000

Cash Flows are:
1st Year 250, 000
2nd Year 150,000
3rd Year 125,000
4th Year 100,000
5th Year 50,000

Calculate the following for your company:
a) WACC
b) Net Present Value (NPV)
c) Internal Rate of Return (IRR)
d) Regular Pay Back Period
e) Discounted Pay Back Period
f) Price Index (PI)


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