Question
In order to finance this project you issue a 5-year zero coupon bond for the total amount of the initial investment. The principal is $1800.
In order to finance this project you issue a 5-year zero coupon bond for the total amount of the initial investment. The principal is $1800. If taxes are 30%. What is the WACC for this project and given that, the new NPV? Do you accept or reject the project?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
