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1. What is the payback in years if investment cost is $67000 and the after-tax benefit...

1. What is the payback in years if investment cost is $67000 and the after-tax benefit is $2800?  (Do not round intermediate calculations, round final answer to two decimals, i,e. 123.45)

2. Bill Preneur buys a piece of equipment for $291,000. He puts down $73,000 and finances the balance. Bill's opportunity cost is 4.4 percent and the lender's interest rate is 8.6 percent. Find the weighted average cost of capital (WACC). (Do not round intermediate calculations, round final answer to two decimals, i.e. 123.45)

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Answer #1

1.Payback Period = Initial Investment/Cash Flow Per year 67000/2800 23.93! Years L

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