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An all-equity firm is considering issuing debt to finance a project that requires an initial investment of $1,000 and yields $1,150 next year. Use the

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An all-equity firm is considering issuing debt to finance a project that requires an initial investment of $1,000 and yields $1,150 next year. Use the following information to answer the questions below: Unlevered cost of equity 15% Cost of debt 10% Tax rate 21% Target D/E ratio 1.0 (a) Calculate the NPV of this project, assuming it is all equity financed. (b) Calculate the levered cost of equity. (c) Calculate the weighted average cost of capital of the levered firm. (d) Calculate the present value of the investment using the WACC calculated in (c)

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