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pls show detailed solution, not excel sheet A company is considering a project with an initial cost of $26,000. The project will produce a cash
pls show detailed solution, not excel sheet
A company is considering a project with an initial cost of $26,000. The project will produce a cash inflows of $16,000 at the end of the first year and $5,000 at the end of each of the following three years. The firm has a pretax cost of debt of 6% and a cost of levered equity of 10%. The debt- equity ratio is 0.34 and the tax rate is 20%. The project has the same risk as the firm. What is the net present value of the project? [Hint: you'll first need to calculate the appropriate discount rate). Round your final answer to the nearest cent, including a negative sign if appropriate (E.g., -855.22)Step by Step Solution
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