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Let's say you have a 10 year project with annual after tax cashflows of $15. Assume after tax salvage value proceeds of $5. You have
Let's say you have a 10 year project with annual after tax cashflows of $15. Assume after tax salvage value proceeds of $5. You have a WACC of 20%; the US Treasury rate is 2% and the equity market risk premium is 6%. What is the maximum amount you would invest in this project?
| $113 |
| $103 |
| $64 |
| $15 |
| $89 |
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