As the financial manager of Wilmore Company Limited, with a passion to boost employment creation through intraregional tourism in Ghana, you have acquired a land at Ho to put up an exquisite amusement park that features a number of attractions including games, pools, gardens, rides etc. The project will cost a total of GH₵100,000. The following cash flows are expected from the project. The beta of the project is 1.5 and the market return is 15%. The risk-free rate of return is 8%. Year ₵ 0 (100,000) 1 20,000 2 25,000 3 32,000 4 35,000 What will be the weighted average cost of capital (WACC)?
As the financial manager of Wilmore Company Limited, with a passion to boost employment creation through intraregional tourism in Ghana, you have acquired a land at Ho to put up an exquisite amusement park that features a number of attractions including games, pools, gardens, rides etc. The project will cost a total of GH₵100,000. The following cash flows are expected from the project. The beta of the project is 1.5 and the market return is 15%. The risk-free rate of return is 8%. Year ₵ 0 (100,000) 1 20,000 2 25,000 3 32,000 4 35,000 What will be the weighted average cost of capital (WACC)?
Chapter11: Capital Budgeting Decisions
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As the financial manager of Wilmore Company Limited, with a passion to boost employment creation through intraregional tourism in Ghana, you have acquired a land at Ho to put up an exquisite amusement park that features a number of attractions including games, pools, gardens, rides etc. The project will cost a total of GH₵100,000. The following cash flows are expected from the project. The beta of the project is 1.5 and the market return is 15%. The risk-free rate of return is 8%.
|
Year
|
₵
|
|
0
|
(100,000)
|
|
1
|
20,000
|
|
2
|
25,000
|
|
3
|
32,000
|
|
4
|
35,000
|
What will be the weighted average cost of capital (WACC)?
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