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Abdel's Boutique is looking at a new project they consider to be a little riskier than their current operations. Thus, management has decided to add
Abdel's Boutique is looking at a new project they consider to be a little riskier than their current operations. Thus, management has decided to add an additional percent to their company's overall cost of capital when evaluating this project. The project has an initial cash outlay of $ and projected cash inflows of $ in year one, $ in year two, and $ in year three. The firm uses percent debt and percent common stock as their capital structure. The company's cost of equity is percent while the aftertax cost of debt for the firm is percent. What is the projected net present value of the new project?
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