Question
Can you please help me with the answer and work associated with the following Capital Enterprise LLC has a capital structure which is based on
Can you please help me with the answer and work associated with the following
Capital Enterprise LLC has a capital structure which is based on 25 % debt, 15 % preferred stock, and 60 % common stock. The after-tax cost of debt is 8 %, the cost of preferred is 9 %, and the cost of common stock is 10%. Capital Enterprise is considering a project that is equally as risky as the overall firm to achieve its new financial objectives. Initial costs of $140,000 and cash inflows of $90,000 a year over the course of two years. What is the projected net present value of this project?
$17,146.07
$19,074.82
$17,571.58
$18,427.44
$21,332.98
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