+- Consider a project of the Pearson Company. The timing and size of the incremental after-tax cash flows for an all-equity firm are $-1000, 5200, 5250, $450, $500 from year 0 to 4 respectively. The unlevered cost of equity is 17%. 2. Calculate the NPV? Should this project be accepted? b. The firm finances the project with $13500 debt at 5% with $100 after-t flotation costs. Principal is repaid at $2500 per year with added interes Pearson's tax rate is 45%. The net present value of the project under leverage? Now. Should this project be accepted? - Consider a project of the Pearson Company. The timing and size of the incremental after-tax cash flows for an all-equity firm are S-1000, 5200, 5250, $450, $500 from year 0 to 4 respectively. The unlevered cost of equity is 17%. a. Calculate the NPV? Should this project be accepted? b. The firm finances the project with $13500 debt at 5% with $100 after-tax flotation costs. Principal is repaid at $2500 per year with added interest Pearson's tax rate is 45%. The net present value of the project under leverage? Now, Should this project be accepted