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Project X requires an initial investment of $1000. The first 3 years the investment has no return (Cf1=0, Cf2=0, Cf3=0). After that you will


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Project X requires an initial investment of $1000. The first 3 years the investment has no return (Cf1=0, Cf2=0, Cf3=0). After that you will receive $500 for 4 years (Cf4:C17-500). Your Cost of Debt =10%, Cost of Preferred Stock=9%, and Cost of Common Stock 13%. Currently 50% of your capital is debt, 25% is preferred stock, 25% is common stock. (hint: you must calculate WACC first) Calculate NPV

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