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Mullen Group is considering adding another division that requires a cash outlay of $30,000 and is expected to generate $7,720 in after-tax cash flows each
Mullen Group is considering adding another division that requires a cash outlay of $30,000 and is expected to generate $7,720 in after-tax cash flows each year for the next five years. The company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6%, the cost of preferred is 7%, and the cost of retained earnings is 12%. The firm will not be issuing any new stock. What is the NVP of this project?
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