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Question: A deposit of 1000 is planned for the end of each year into an account paying 6% per compounded annually. The deposits were not made in years 8 and 9 but were made each year until year 30 for all other years. What amount will be in the account at the end of year 30?

(Unrelated to above). A company will invest 1,000,000 in projects. 600,000 will be through debt capital with a before tax cost of 9%. The remaining 400,000 will be provided through equity funding at a cost of 10%. The corporate tax rate is taken to be 40%. What is the weighted average cost of capital?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93129534

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