Amining company is considering a new project. because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. the firm could spend an additional $10 million at year 0 to mitigate the environmental problem, but it would not be required to do so. developing the mine (without mitigation) would cost $60 million, and expected net cash inflows would be $20 million per year for 5 years. if the firm does invest in mitigation, the annual inflows would be $21 million. the risk-adjusted wacc is 12%.a) calculate the npv and irr with and without mitigation. b) how should the environmental effects be dealt with when this project is evaluated? c) should this project be undertaken? if so, should the firm do the mitigation?

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Excel allows you to take a lot of data and organize it in one document. what are some of the features you can use to clarify, emphasize, and differentiate your data?

Record the journal entry for the provision for uncollectible accounts under each of the following independent assumptions: a. the allowance for doubtful accounts before adjustment has a credit balance of $500. b. the allowance for doubtful accounts before adjustment has a debit balance of $250. c. assume that octoberʼs credit sales were $70,000. uncollectible accounts expense is estimated at 2% of sales. smith, gaylord n.. excel applications for accounting principles (p. 51). cengage textbook. kindle edition.