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Question 39 (4 points) A proposed project lasts 3 years and has an initial investment of $500,000.00. The after-tax cash flows are estimated at $120,000.00
Question 39 (4 points) A proposed project lasts 3 years and has an initial investment of $500,000.00. The after-tax cash flows are estimated at $120,000.00 for year 1, $240,105.00 for year 2, and $240,105.00 for year 3. The firm has a target debt/equity ratio of 0.91. The firm's cost of equity is 10.00% and its cost of debt is 8.00%. The tax rate is 39.00%. What is the NPV of this project? $9,786.32 $14,293.23 $12,049.93 O $14,024.76
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
