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Georgia Movie Company has a capital structure with 46.00% debt and 54.00% equity. The cost of debt for the firm is 9.00 %, while
Georgia Movie Company has a capital structure with 46.00% debt and 54.00% equity. The cost of debt for the firm is 9.00 %, while the cost of equity is 15.00%. The tax rate facing the firm is 40.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.02 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 10.00-year period. What is the NPV of this project? (express answer in millions, so 1,000,000 would be 1.00) Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here...
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