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Consider a project to produce solar water heaters. It requires a $10 million investment and offers a level after-tax cash flow of $1.71 million per

Consider a project to produce solar water heaters. It requires a $10 million investment and offers a level after-tax cash flow of $1.71 million per year for 10 years. The opportunity cost of capital is 11.45%, which reflects the projects business risk. b. If the firm incurs issue costs of $580,000 to raise the $5 million of required equity, what will be the APV?

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