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QUESTION 4 4 . Your company is considering a project that will cost $1.5 million. The project will generate after-tax cash flows of $475,000 per
QUESTION 4 4 . Your company is considering a project that will cost $1.5 million. The project will generate after-tax cash flows of $475,000 per year for 3 years. The WACC is 12% and the firm's target D/E ratio is 0.40 The flotation cost for equity is 5% and the flotation cost for debt is 3%. What is the NPV for the project after adjusting for flotation costs? Arial 3 [12pt)
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