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A company has the following capital structure: Account $ Costs before tax ____________________________________________________________ long-term debt $2,000,000 10% Preferred-stock $500,000 14% Common stock $2,500,000 18% Find

A company has the following capital structure:

Account $ Costs before tax

____________________________________________________________

long-term debt $2,000,000 10%

Preferred-stock $500,000 14%

Common stock $2,500,000 18%

Find NPV, PI, IRR and MIRR. Which projects would you recommend and why?

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