Question
Im having a problem in solving those this question. can someone please explain it to me. Waterdeep Adventure Travel has an unlevered cost of equity
Im having a problem in solving those this question. can someone please explain it to me.
Waterdeep Adventure Travel has an unlevered cost of equity of 16.7%, and a cost of debt of 6.8%. Their tax rate is 42%, and they maintain a capital structure of 57% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $79,504, and would bring in $20,732 one year from today, and $81,870 two years from today. What is the NPV of this project, using the WACC method, if they invest today?
Please give your answer to the nearest dollar.
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