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Firm UVW has a face debt value of $ 5 5 Million USDs trading at 7 0 % with a pre - tax weighted cost
Firm UVW has a face debt value of $ Million USDs trading at with a pretax weighted cost of Firm UVW's common equity for the year was valued at $ Million of USDs and preferred equity for $ Million of USDs. The Preferred equity rate was calculated to be However, the common equity was to be calculated using CAPM approach, with a risk free rate and a market risk premium rate, assuming a Beta of If the tax rate is what is Firm UVW s WACC? Continue considering Firm UVW. Suppose Firm UVW is considering investing in a new project of urban development. The cost of the project is $ Millions of USD. Firm UVW expects that the nonincremental yearly cash flows from the project are $ Million of USD for the next five years; eg that is $ Million of USD each year. Using the calculated WACC in the previous question, what is the Net Present Value NPV of the project?
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