Part 1 is worth 50 percent (Part 2 is worth the remaining 50%)

Part 1 is worth 50 percent (Part 2 is worth the remaining 50%). The excel file for Part 1 is attached below. Enter your answers on the excel file in the appropriate areas below the questions.

Use and show the formulas in excel for all your numerical answers. Assignment 3 Part 1 is divided in two Sections; Section one is worth 60% and section two is worth 40% of the points available for Part 1 of this Assignment. 

For a detailed explanation of how to solve this problems, see the video "Assignment 3 - Cost of Capital/Capital Budgeting" available in "Modules". Note that in this video, you only need the first 31 minutes as after that, I discuss a problem not included in this assignment.

Assignment 3_Part 1_wacc and capital_budgeting.xlsx  download 

Section 1 is mainly from Chapter 9 and you will find this part similar to Problem 9-26. Solutions to the chapter practice problems and excel files are available in Canvas.

Section 2 is the capital budgeting section from Chapter 10. An example is found on pages 255-257 "Risk and Capital Budgeting" section from Chapter 10. In addition, you can find similar problems and solutions in the Canvas Practice Problems section for Chapter 10.