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MVP , Inc., has produced rodeo supplies for over 2 0 years. The company currently has a debt - equity ratio of 7 0 percent

MVP, Inc., has produced rodeo supplies for over 20 years. The company currently has a debt-equity ratio of 70 percent and the tax rate is 21 percent. The required return on the firm's levered equity is 14 percent. The company is planning to expand its production capacity. The equipment to be purchased is expected to generate the following unlevered cash flows:
\table[[Year,Cash Flow],[0,$18,700,000
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