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show workings. need answer asap Compresorostion/40264.23 3 Hunter x Hunter 20 Uve Cricket and we Wen-Grey Men's D D DragonFlights, Inc. is planning on purchasing

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Compresorostion/40264.23 3 Hunter x Hunter 20 Uve Cricket and we Wen-Grey Men's D D DragonFlights, Inc. is planning on purchasing a new flying dragon for their new route to Volantis. The cost of the dragon is $10.5 million On average the dragons are operational for about 10 years. They believe that the new route will produce the positive operating cash flows of $2,550,000 per year for the next 10 years DragonFlights is currently financed with equity and debt. They have 1 million shares outstanding and shares are trading at a price of $125 per share. Stock beta is 24 as dragon flying business is a risky business, Company also has bonds outstanding in the total amount of $50 million in book value. Bonds are trading.at discount at 85% of par or in other words at 15% below par value of $1,000. Bonds have 15 years to maturity and have a coupon rate of 12% per year, with coupon paid semi-annually. Bonds have a face value of $1.000, Current risk free rate is 3% and market risk premium is 6.5%. Marginal tax rate is 22% Using the cost of capital you calculated as a discount rate, what is the NPV for the new project? Show your work in the box below or Excel file

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