Gino & Co. is a firm that is thinking of increasing its productive capability by building a new plant. The new investment entails a capital expenditure of 150,000,000 NOK for acquiring new assets. The project is expected to generate a constant unlevered after-tax cashflow of 43,200,000 NOK for 5 years, and then it will be dismissed at no cost. Before the investment, the levered return on equity of the company is 14% and its debt-to-equity ratio is 1.5. The interest rate paid by the company on its debt is 5%. The company keeps a constant debt policy, and the new project will be all equity financed. The corporate tax rate is 34%. What is the NPV of the project? (a) Approximately 15.78 million NOK (b) Approximately 12.15 million NOK (c) Approximately 11.50 million NOK (d) Approximately 9.65 million NOK Answer is A