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Jom's company wants to have a project which the project generates EBIT of $243,440 each year for 19 years, and the company plans to maintain
Jom's company wants to have a project which the project generates EBIT of $243,440 each year for 19 years, and the company plans to maintain the same D/E ratio
the initial cost is $1,360,000 the MRP is 9.9% and the risk free rate is 4.3%
company's beta is 1.6
company's current D/E ratio is 50%
pays tax at a rate of 20% and the cost of debt is 5.6%
Find out the NPV using WACC method, and the answer is -147,630.34. Can someone explain how to get that result with steps? This is the correct result.
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