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Crochet Co is considering an investment in a project which would require an initial outlay of $332723 and produce expected cash flows in years 1
Crochet Co is considering an investment in a project which would require an initial outlay of $332723 and produce expected cash flows in years 1 through 6 of $89057 per year. You have determined that the current after-tax cost of the firm's capital (required rate of return) for each source of financing is as follows: Source of Capital Cost Weight Long-Term Debt 4% 45% Preferred Stock 8% 18% Common Stock 14% 37% What is the net present value of this project? Round to the nearest dollar
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