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Question A [RC1: 5 Marks) You are considering an investment in a project that requires an initial outlay of $205,000 and will produce after-tax cash
Question A [RC1: 5 Marks) You are considering an investment in a project that requires an initial outlay of $205,000 and will produce after-tax cash flows of $30,000 per year for the next 15 years. Your firm uses 50 percent debt and 50 percent equity in its financing. The after-tax costs of debt and equity are 9% and 13%, respectively. a. What is the firm's WACC? b. What is the project NPV? Should the project be accepted
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