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CrochetCo is considering an investment in a project which would require an initial outlay of $342417 and produce expected cash flows in years 1
CrochetCo is considering an investment in a project which would require an initial outlay of $342417 and produce expected cash flows in years 1 through 5 of $87578 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 5% 52% Preferred Stock 9% 18% Common Stock 13% 30% What is the net present value of this project?
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