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A project has an IRR of 16% and is being considered by a firm with $5 million in debt and $15 million in equity. Assuming

A project has an IRR of 16% and is being considered by a firm with $5 million in debt and $15 million in equity. Assuming debt costs 12% (after tax value), what is the most equity can cost for the project to be acceptable to the firm?

18.25%

17.83%

17.33%

16.89%

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