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HW Assignment: XYZ Corporation is considering a new capital investment project that requires an initial investment of 1 = $100,000 The project will generate after-tax,

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HW Assignment: XYZ Corporation is considering a new capital investment project that requires an initial investment of 1 = $100,000 The project will generate after-tax, year-end cash inflows of $22,000 per year for 15 years. The firm has a debt-to-equity ratio of D/E = 0.50. The equity beta for XYZ is B = 1.2. The expected return on the market is E[RM] = 8% and the risk-free rate is RF = 3%. The before-tax cost of debt is kD = 9.0%. The corporate tax rate is T = 40%. Calculate the WACC and the NPV, the IRR, and the Pl of the project and decide if XYZ should accept this project

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