单选题 A firm is considering a $200000 project that will last 3 years and has the following financial data : Annual after-tax cash flows are expected to be $90000. Target debt/equity ratio is 0. 4. Cost of equity is 14 percent. Cost of debt is 7 percent. Tax rate is 34 percent. Determine the project's payback period and net present value(NPV). Payback Period NPV ①A. 2.43 years $18716 ②B. 2.22 years $18716 ③C. 2.43 years $21872

A、

A.①
B、

B.②
C、

C.③

【正确答案】 B

【答案解析】
{{U}}Payback Period{{/U}}
$200000/$90000 = 2.22 years
{{U}}NPV Method{{/U}}
First, calculate the weights for debt and equity
w_d+w_e=1
w_e=1-w_d
w_d/w_e=0.40
w_d=0.40×(1-w_d)
w_d=0.40-0.40w_d
1.40w_d=0.40
w_d=0.286, w_e=0.714
Second, calculate WACC
WACC=(w_d×k_d)×(1-t)+(w_e×k_e) =(0.286×0.07×0.66)+(0.714×0.14)= 0.0132+0.100 =0.1132
Third, calculate the PV of the project cash flows
90/(1+0.1132)¹+90/(1+0.1132)²+90/(1+0.1132)³=$218716
And finally, calculate the project NPV by subtracting out the initial cash flow
NPV=$218716-$200000=$18716