CORPORATE FINANCE- ACCESS >C<
CORPORATE FINANCE- ACCESS >C<
12th Edition
ISBN: 9781307447248
Author: Ross
Publisher: MCG/CREATE
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Chapter 18, Problem 2CQ

WACC and APV What is the main difference between the WACC and APV methods?

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Equipment is worth $339,976. It is expected to produce regular cash flows of $50,424 per year for 18 years and a special cash flow of $75,500 in 18 years. The cost of capital is X percent per year and the first regular cash flow will be produced today. What is X? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86% (do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places. percent
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