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#17 A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 5 Sales 125,327.00 125,327.00 125,327.00 125,327.00
#17 A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 5 Sales 125,327.00 125,327.00 125,327.00 125,327.00 125,327.00 Atte Cost of Goods 64,755.00 64,755.00 64,755.00 64,755.00 64.755.00 S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation 21,829.00 21,829.00 21,829.00 21,829.00 21,829.00 Investment in NWC 1,017.00 582.00 582.00 582.00 582.00 582.00 Investment in Gross PPE 109,145.00 The firm has a capital structure of 48.00% debt and 52.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 13.00%. The tax rate facing the firm is 34.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the NPV of the project? (Hint: Be careful about rounding the WACC here!) Submit Answer format: Currency: Round to: 2 decimal places
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