Name: Mohammad — Aghvad Hossem — Sat? Dp: WZlel80a0 No- 4 Ben Answer : i Ren Answer ® DR: ge de * S%lo = OGa4 gy 24 os) = £2-J0 Do: Dd. Cage) © 210 soos) = 2-2) 3 - D2 Ug.) 5 Qa Uy O08) = FAB. Wr fy. 200 “lee = $ 88 Pu ft oo 221 Tron to & Wag bye Dd Q 3 BeBe ones hes — Tetl py. g 5-29 Scanned with CamScannerPv © mw. | ous (4 0-298 2 8 aya d) > OT. Poy = 86-29 4$ou-a2 2 $ 80'0) oy de taro O12 0°05 = $ 30 2) Scanned with CamScannerNo. 2 Anawer (4) Severs of capital chonld be long -deem a debt, Peeleveed she and Coraenon + Bock . The component costs should be Revered on often: tax Basis, 3) 20 4 (OOO = SSE Bs —___ woos WE332, = = 1O-2e/, Yi = 02 (Q— 0-40) > Gir? le (D tor of peeleored shok = a e Np = NG 95 (V- 0-08) E Wl92S 10 IW t02S : 9°lo As me cost og of prefemed shock is highee fren cost £ debt, so Tt ull ts ailber Bo MWe investors to vest in peefewed stock, Also. Ws se became the cot of bt ty dan oa cmd Ha man wheres prelemred strel ts nok . Scanned with CamScannerOAR (8) ERMP cppreoek * — 2 | Re] 7 S6% + Siang cu} © 128 oF, © oer Oo oF et be Do = Btn D. = Do U4 4d > B12 (ye 68%) = 130 ts My > a + 58), = IDG, (2) Fined estwitle ts overage of CAPM ond DEF \D.B%o & 124 Mo = s '2:6%%, () PF Brel = 30% Ces = 3), Wes > O°h fs = Inu Wet 60% Wace = WE) + Cum x Oy) 4 (os x) q Ceeree a) * (ore 29%) + (Gosle * 124%) Scanned with CamScanner() Re = sem Pa- Re = 6% betn = 1-9 Wet So%.4 [ay ble) > 168, “ar '2C1~ ore) Son waees Gay y 10%) 4 (6-846 x 309),) = \u944, The ch, ok ta new durin ig ghee tus Mom's averege aisle . Hlontever, i the Petuen is Vgheo then the company — ghould the Ws ate eongderation Scanned with CamScannerNo S Angew @) Paybock period of Late At Bartel savastmend = € Gg0000 TaNaas Neo Bhlows, A $ 128000 2 $ [a2000 > AGE O00 $168000 $US 0000 Payback Peviod 2 & le000, u a. 45000 “SES ayy 2 4 yes ig dys Rake Pryloorh period gf lathe = Q. Gated wvestwend 2 § %e0000 Teso Pr lows a 4+ 88000 m & 120000 3 $ S.6009 q $ 86000 . $ 2074000 Payback period = S geo, _SSd00 “Roos * 3 gears 12 months RB manths Scanned with CamScannerg falas pegbeek period into — considecorHon Lethe B willl be prefered as MH is quicker. ©) 3. Med peared present velve of Lathe At Gee Prorent vale of git wrelors = 126000 18 2000 \@GO00 (e& 4S 0900 : + (6 8ED0 (ons) * Crow * Geog? * Groigt * Gop 2 $9832 6954 NPv = $arslg2- 849 - % Eeoa00 = $seig2-.ea Net present vale of Lathe Q- Present vale of ol wflowg = S8o0e 129000 26000 Weed * Cows * tap ESR feta = $403483-2un WPv = $ 403483: 24N - $ ZQ0000 2% 4848324 Ry enasidering NPV, Loe A ts preferred over Latte 6, Recomne tre NPv of Latte A which ig $ Se92:98 ts Wigher than NPV of Lathe Q@ which is $4 3485) Scanned with CamScanner2. Endeonal Rate of Reten of Lathe As Lets take — lowew diceomnd cote Soy 12%, NPV ok I2%e = spas, 4 get. 4 spbans, « fStaa. 4 Efe 24199689: GU sa NPV = 8 439629 .cuay- ee $660000 = 4 196¢59.04 Lets tehe — Lugher dacmntd vote as 1S %o NPV ok 59), = \ZBOCo 1% 2000 tecos0 '@ $000 Usoeso —_— 3606-6 (& ons) * Ceo? * tee * Tonys * *eeDe sc SOHRSG. 20g NPV = Scaqesu 26a - &Gc0000 Svssu: a9 ” BRR > lowe tseount eate + SPN of lower discout rate Dikeeende bebaen NES Dlhorence reternr codes Steele a} _ASeese4 MDGES9EURI4 SSuay ” (srt. -24,)] & \Ssshe. Scanned with CamScannerGareoncl Rote S Reta of lotnan, QR’ Leite tobe lower drenat ote on 12% NPV = QBO00 BG6000__ 204000 £20000 4 96200 26000, 4 (eo) . (of Gow * (ttoar) rons 2% av4eag- uns NEV = S$414GF9 «sits - $6 3c0000 sc $ sueqq.si Lets tobe higher discount vote as IS “lo NPV = e000 4 207000 Cees) ricer; os (roi * Teoigy * Crosy= = 4 282400 9068 MPV = $ 280 UE. Q008 - $ 30000 =$2246¢+ 50 Pees o + NA, Weve wy, * Gen) ee A US 24h \ SU CTE5) = 224EG 09 Gste A) LAs loo Se, camsbteriay the FRE of AY GOR, Lome B&B rs preferred ag Lethe & Is Wgher front Lethe Scanned with CamScanner© wwle Sam morteinng the teelemiqued, peefervences 5 ve con see thot booth projects Vee, aaaticling eonlinds « Qn past peylack period Lote Byes qvicdker then’ Lathe A, co it o8a preferred . 2a WEN Lothe A 5 Wed ww peefecred fpecoase Woe Wighes vere than Vee Lostty is praslen prefamed because vcotwnn, thon — Lothe A. So, Ww FRR, Latte Woes 8 higher foo wing difkren’d — Aeelniqua ue ger 8 oral Keking wenkiyy . @& (8) From prot methods to Pugloack a tw irregh be used thee diflerensd embeded tun period ty jnvesimend ill be prejet. We used hen understand Khe veton of fevestene veceved 1s Thogh it hay some weokneages « Sof ewer thete. — Weokneases we used NPN, f caleulote Mee net present vee of the Progacks « Teetlg we used FRR og th is mostly sell Peectically . ley BL chews the aerede of cons dorens, NPV equals te zeros Beased feeommand pate Ney on thee, lete B& Yecamse Ww ydisometions 2 gers peclanenca in sth «—peyboel pertod ond GRR. Scanned with CamScanner