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include all the values Kottinger's kamp Supplies is considering an investment in new manufacturing equipment. The equipment costs $220,000 and will provide annual after tax
include all the values
Kottinger's kamp Supplies is considering an investment in new manufacturing equipment. The equipment costs $220,000 and will provide annual after tax inflows of $50.000 at the end of each of the next seven years. The firm's market value debt equity ratio is 25. its cost of equity is 14% and its pre-tax cost of debt is 7%. The flotation costs of debt and equity are 3 and 9% respectively. The firm's combined marginal federal and provincial tax rate is 10. Assume the project is of approximately the same risk as the firm's existing operations After considering flotation costs, what is the NPV of the proposed project? Multiple Choice 51070 o $9.264 $7,098 $2.122 Rrey 1 of 24 !! Next > Step by Step Solution
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