Question
A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $83,550 for year 1, $166,380
A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $83,550 for year 1, $166,380 for year 2, and $182,090 for year 3. The firm has a target debt/equity ratio of 1.37. The firm's cost of equity is 16.42% and its cost of debt is 11.62%. The tax rate is 34%. What is the NPV of this project?
$137,513
$141,038
$144,564
$148,090
$151,616
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