Question
As the CFO of a major corporation, you are considering whether to accept a project with after-tax cash flows as indicated below. The beta for
As the CFO of a major corporation, you are considering whether to accept a project with after-tax cash flows as indicated below. The beta for the project is 1.4 and the return on the market is expected to be 12%. The current risk free is 4%. What is the NPV of the project?
Time After-tax cash flow
0 -45
1 5 11
6 10
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Urban Infrastructure Finance And Management
Authors: K. Wellman, Marcus Spiller
1st Edition
0470672188, 978-0470672181
