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Question 15 (1 point) Saved Suppose ABC Company is considering opening another office. The expansion will cost $50,000 and is expected to generate after-tax cash
Question 15 (1 point) Saved Suppose ABC Company is considering opening another office. The expansion will cost $50,000 and is expected to generate after-tax cash flows of $10,000 per year for 20 years. The firm has a target debt/equity ratio of .5. New equity has a flotation cost of 10% and a required return of 15%, while new debt has a flotation cost of 5% and a required return of 10%. The tax rate is 34%. What is an NPV of the project when we consider floatation costs
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