Assume that the Pleasant Restaurants management uses a WACC approach to NPV, the initial investment is $20,000,
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Assume that the Pleasant Restaurant’s management uses a WACC approach to NPV, the initial investment is $20,000, the project has a beta of 1.5, the re- turn on the market portfolio is 16%, the risk-free rate is 6%, the project will be financed with 50% debt, the borrowing rate is 10%, and the firm’s tax rate is 30%. Using your answers to Problem 8.5 above, calculate the NPV for the Pleasant Restaurant’s new project.
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Related Book For
Financial Management For The Hospitality Industry
ISBN: 9780131179097
1st Edition
Authors: William P Andrew, James W Damitio
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