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Raleigh Paving Co is- considering- a- new- project-with- an- initial- cash-outlay- of $70,000 and projected- cash- inflows- of $25,000 in Year 1, $40,000 in Year
Raleigh Paving Co is- considering- a- new- project-with- an- initial- cash-outlay- of $70,000 and projected- cash- inflows- of $25,000 in Year 1, $40,000 in Year 2, and $75,000 in Year 3.-The firm- uses 50% debt- and 50% common- stock-as- its capital- structure. The company's cost-of-equity- is 15%; the aftertax- cost-of- debt- for-the-firm- is 7%. Raleigh Paving considers- the-new- project- to- be- a- riskier- than-its- current- operations, thus- it-has- decided-to-add- an- additional 1.5% to- the- company's overall- cost- of- capital-when- evaluating-this- project.- The-net- present-value-of-this- project- is?- O $41,427 $573 $30,502 $36,502 $40,308
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