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5 . DigiFlix is a streaming service for home movies. It plans to issue debt to finance an upgrade to its IT infrastructure. The project
DigiFlix is a streaming service for home movies. It plans to issue debt to finance an upgrade to its IT infrastructure. The project will cost $ million and debt issuance costs are of the amount raised. The firm estimates that the upgrade will generate perpetual aftertax cash flows of $ millionyear beginning one year from today. If the appropriate discount rate is what is the NPV of this project?
A $ million this is the correct answer
B $ million
C $ million
D $ million
E $ million
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