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Consider a project to produce mind - controlled drones. This project requires a $ 7 0 million investment immediately and offers a pre - tax
Consider a project to produce mindcontrolled drones. This project requires a $ million investment immediately and offers a pretax cash flow of $ million at the end of the first year. After that, it will grow at annually for the next years, for a total of years. The unlevered cost of capital is
Suppose that the project is financed with $ million of debt and $ million of equity. The plan is to pay down ALL of the debt in equal annual installments over the project's year life. The interest rate paid on the debt is and the marginal corporate tax rate is Calculate the value of this project. What is the project's net present value NPV
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