Problem 10.14 
Briarcrest Condiments is a spicemaking firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,722,000. have a life of five years, and would produce the cash flows shown in the following table.
Year  Cash Flow 

1  $557,647 
2  245,452 
3  918,984 
4  902,130 
5  576,385 
What is the NPV if the discount rate is 16.06 percent? (Enter negative amounts using negative sign e.g. 45.25. Round answer to 2 decimal places, e.g. 15.25.)
NPV is  $  . 
Problem 11.24 
Bell Mountain Vineyards is considering updating its current manual accounting system with a highend electronic system. While the new accounting system would save the company money, the cost of the system continues to decline. The Bell Mountain’s opportunity cost of capital is 16.9 percent, and the costs and values of investments made at different times in the future are as follows:
Year  Cost  Value of Future Savings (at time of purchase) 


0  $5,000  $7,000  
1  4,600  7,000  
2  4,200  7,000  
3  3,800  7,000  
4  3,400  7,000  
5  3,000  7,000 
The NPV of each choice is:
NPV_{0} = $.
Problem 12.24 
At $20 per bottle the Chip’s FCF is $[removed] and at the new price Chip’s FCF is $[removed].
Capital Co. has a capital structure, based on current market values, that consists of 25 percent debt, 8 percent preferred stock, and 67 percent common stock. If the returns required by investors are 10 percent, 11 percent, and 19 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s aftertax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

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