$27$

$4$ points

Suppose that a firm has both a current and target debt$-$equity ratio of $0\mathrm{.}6,$ cost of debt is $15\mathrm{.}15\%,$ and cost of equity of $20\%.$ The corporate tax rate is $34\%.$ Suppose that the firm is considering a project that costs $$50$ million today and expected to yield cash flows of $$12$ million per year for $6$ years.

Find the NPV$.$

$$$6\mathrm{.}07$ million

$$2\mathrm{.}91$ million

$$14\mathrm{.}56$ million

$$8\mathrm{.}13$ million