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Need the Third one answered there are two similar questions with the answers above Roger has a levered cost of equity of 0.12. He is

Need the Third one answered there are two similar questions with the answers above

  1. Roger has a levered cost of equity of 0.12. He is thinking of investing in a project with upfront costs of $8 million, which pays $2 million per year for the next 8 years. He is going to borrow $4 million to offset the startup costs at a rate of 0.05. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?

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643,693margin of error+/-10,000

  1. Roger has a levered cost of equity of 0.18. He is thinking of investing in a project with upfront costs of $8 million, which pays $1 million per year for the next 8 years. He is going to borrow $2 million to offset the startup costs at a rate of 0.08. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?

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-4,134,468margin of error+/-10,000

  1. Roger has a levered cost of equity of 0.10. He is thinking of investing in a project with upfront costs of $9 million, which pays $2 million per year for the next 4 years. He is going to borrow $4 million to offset the startup costs at a rate of 0.08. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?

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