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(11 points) The Azzon 0i1 Company is considering a project that wi11 cost $50 mi11ion and have a year-end after-tax cost savings of $7 mi11ion
(11 points) The Azzon 0i1 Company is considering a project that wi11 cost $50 mi11ion and have a year-end after-tax cost savings of $7 mi11ion (i.e. an increase in un1evered free cash flows) in perpetuity. Azzon's before tax cost of debt is 10% and its cost of equity is 16\%. The project has risk similar to that of the operation of the firm, and the target debtequity ratio is 1.5. What is the NPV for the project if the tax rate is 34%
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