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Hello, Please i need help on this question You're trying to value a project which will last for 5 years and cease to exist after
Hello, Please i need help on this question
You're trying to value a project which will last for 5 years and cease to exist after that. The initial cost of the project is $500,000. The projects is expected to yield the following cash flows: 200,000 in year one, 600,000 in year two, 50,000 in years three, four and five. Please use the following information to determine the NPV of this project. What is IRR of this project?
Tax-rate: 25%
Cost of Debt: 8%
D/E ratio: 3/5
T-Bill rate: 2%
S&P 500 expected return: 10%
Beta: 2
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