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A project costs $1 million and has a base-case NPV of exactly zero (NPV =0 ). (A negative answer should be indicated by a minus
A project costs $1 million and has a base-case NPV of exactly zero (NPV =0 ). (A negative answer should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars.) a. If the firm invests, it has to raise $620,000 by a stock issue. Issue costs are 17.85% of net proceeds. What is the project's APV? b. If the firm invests, there are no issue costs, but its debt capacity increases by $620,000. The present value of interest tax shields o this debt is $88,000. What is the project's APV
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