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A corporation has $ 5 0 0 , 0 0 0 in bonds outstanding with a 5 % annual coupon rate, 1 5 years to
A corporation has $ in bonds outstanding with a annual coupon rate, years to maturity, a $ face value, and a $ market price. The company's shares of common stock sell for $ per share and have a beta of The riskfree rate is and the market return is The company has a tax rate. They are considering a project which will provide annual cash flows of $ per year for years, costs $ and requires working capital of $
a What is the NPV and IRR for this project? Based on your analysis, should the company accept the project?
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