Question
A project has an initial cost of $110,000 and cash inflows of $65,000 in year 1 & $74,000 in year 2. The project is an
A project has an initial cost of $110,000 and cash inflows of $65,000 in year 1 & $74,000 in year 2. The project is an extension of the firm's current operations. The firm has a 0.45 D/E ratio, after-tax cost of debt of 4.8% and a cost of equity of 12.7%. The effective tax rate = 35%. What is the project's NPV?
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
