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Question 8 4 pts Without the cash to purchase the machine, Quantum Corp. needs to raise the money in the stock and bond markets. The
Question 8 4 pts Without the cash to purchase the machine, Quantum Corp. needs to raise the money in the stock and bond markets. The D/E ratio of Quantum is 0.5. The floatation cost for equity is 6%, and the floatation cost for debt is 3%. What is the NPV for the project after adjusting for flotation costs? $1,153 -$1.733 -$2,517 -$2,205 0 Quantum Corp. is considering purchasing a new milling machine with a useful life of 6 years. The initial outlay for the machine is $20,000. The required rate of return for Quantum Corp. is 12.75% (WACC). The expected cash flows are as follows: Year After-tax Expected Cash Flow 1 $3,000 N $4.000 3 $6,000 $8,000 5 $8.000 6 $1,000
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