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10.15. 12-S01:22A company invests 20,000 in a project. The project is expected to have cash flows of 3000 at the end of each year for

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10.15. 12-S01:22A company invests 20,000 in a project. The project is expected to have cash flows of 3000 at the end of each year for 15 years, with the first cash flow expected one year after the initial investment Using the project's after-tax weighted average cost of capital, the project has a net present value of 2496 27 The following gives additional information about the company (1) The company is financed with 40% equity and 60% debt. (11) The company's marginal tax rate is 25% (11) = 2rd, where re is the cost of equity and rp is the cost of debt. Calculate (A) 10.25% (B) 12.40% (C) 13.25% (D) 14.60% (E) 16,40%

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