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i need an explanation and answer to this finance problem. Ramblin Wreck is a firm specializing in engineering components. The firm is publicly traded and
i need an explanation and answer to this finance problem.
Ramblin Wreck is a firm specializing in engineering components. The firm is publicly traded and is considering the following project: The project will last 5.00 years with an annual cash flow of $40.00 million. The project will require an initial investment of $140.00 million The firm must determine the cost of capital to evaluate the project. (The project is within the firm's normal activities) Ramblin Wreck, Inc. Financial Data: The risk free rate in the economy is currenty 2.00%, while investors have a market risk premium of 7.00%. Ramblin Wreck, inc. has a beta of 1.43 . The tax rate is 37.00%. What is the NPV of the project? (express in milions, so 1000000 would be 1.00 ) Answer Format: Currency: Round to: 2 decimal places Step by Step Solution
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