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Isaac's Trucking Company, Inc. is planning to value a project. The project will require an initial investment of $1,250,000 and will generate cash flows of
Isaac's Trucking Company, Inc. is planning to value a project. The project will require an initial investment of $1,250,000 and will generate cash flows of $250,000 in year 1, $312,500 in year 2, $375,000 in year 3, $437,500 in year 4, and $475,000 in year 5. The firm will be using 40% debt and 60% equity to finance the project. If the firm's cost of capital is 16% should the firm accept or reject the project? Isaac's Trucking Company, Inc. is planning to value a project. The project will require an initial investment of $1,250,000 and will generate cash flows of $250,000 in year 1, $312,500 in year 2, $375,000 in year 3, $437,500 in year 4
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