1. Explain the five steps used in NPV analysis.
2. What decision criteria should managers use in selecting projects when there is not enough money to invest in all available positive-NPV products? Provide an example.
3. Timco has EBIT of 100. This should continue forever. The tax rate is 40%. The cost of equity is 12%. Find the firm's value and the WACC if Timco adds 50 in 5% debt.