Use this Excel spreadsheet (click me) to answer question 6-8…

Use this Excel spreadsheet (click me) to answer question 6-8.  The equipment for this project uses the 5-year MACRS depreciation schedule, highlighted in bold; when the project concludes after 6 years, the equipment will expire worthless. What is the IRR of this project?

What is the firm’s weighted average cost of capital (WACC)?…

What is the firm’s weighted average cost of capital (WACC)? Debt information:   Bond price  $         1,080.54 Bond face value  $               1,000 Annual coupon rate (paid semi-annually) 7.50% Years to maturity 8 Yield to maturity 6.21% Marginal tax rate 20.0%     Equity information:   Risk-free rate 4.0% Stock beta 1.15 Expected return on the market 12.0%     Weight of debt 40% Weight of equity 60%