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Sarvon Systems has a debt-equity ratio of 1.1, an equity beta of 1.9, and a debt beta of 0.21. It currently is evaluating the following

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Sarvon Systems has a debt-equity ratio of 1.1, an equity beta of 1.9, and a debt beta of 0.21. It currently is evaluating the following projects, none of which would change the firm's volatility (amounts in $ millions). a. Which project will equity holders agree to fund? b. What is the cost to the firm of the debt overhang? a. Which project will equity holders agree to fund? (Select from the drop-down menus.) A E Project Accept? b. What is the cost to the firm of the debt overhang? The cost to the firm of the debt overhang is $million (Round to the nearest integer.) Data Table - x (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Project A B D E Investment 102 48 82 28 77 NPV 21 5 11 16 19 0 Print Done Enter your answer in the answer box

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