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A project costs $2 million and has a base-case NPV=0. If the firm decides to invest, it has to raise $800,000 by a stock issue.
A project costs $2 million and has a base-case NPV=0. If the firm decides to invest, it has to raise $800,000 by a stock issue. Issue costs are 10% of the net proceeds. What is the APV of the project?
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To calculate the Adjusted Present Value APV of the project we need to follow these s...
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
