Problem
1) US based MLTN Engineering company is currently at Its target debtequity ratioof 4:5. It is evaluating a proposal to expand capacity which Is expected to cost USD 4.5 million and generate after-tax cash flows of USD 1 million per year for the next ten years. The tax rate for the company Is 25%. Two financing options are being looked at:
• Issue of equity stock - The required return on the company": new equity is 18%. The issuance cost will be 1096.
• Issue of debentures carrying a yield of 1256. The issuance cost will be 2%.
What is NW of the expansion project?
2) What are the skills needed to become a technical project manager?