WACC RATE s 6.03%. property , plant and equipment 1,555,768 assets 869174 construction-in progress 286,658 Intangible assets 8,238,925 Interests in associates and joint ventures 86,090 Deferred income tax assets 8 2,462,103 Financial assets at fair value through profit or loss 1,027,518 Financial assets at fair value through other comprehensive income 79,809 Other non-current assets 396,897 The parameters for the week 7 project deliverable are as follows.
The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project. The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate.
