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DigiFlix is a streaming service for home movies. It plans to issue debt to finance an upgrade to its IT infrastructure. The project will cost
DigiFlix is a streaming service for home movies. It plans to issue debt to finance an upgrade to its IT infrastructure. The project will cost $ million, and debt issuance costs are of the amount raised. The firm estimates that the upgrade will generate perpetual aftertax cash flows of $ millionyear beginning one year from today. If the appropriate discount rate is what is the NPV of this project?
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