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solve w work for A. and B. please You are looking at an investment for your firm. You can buy a manufacturing plant for your

solve w work for A. and B. please
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You are looking at an investment for your firm. You can buy a manufacturing plant for your firm for $90 mition. You consider this investment to be of average risk to your company. You belleve that there are three possible scenarios for this investment: 1. The investment generates a steady stream of FCFs of $15 million per year into perpetuity (with a probability of 40% ) 11. The investment generates a steady stream of FCFs of $9 milion per year into perpetuity (with a probability of 30% ) ii. The investment generates a steady stream of FCFs of $4 million per year into perpetuity (with a probability of 30% ) You also are aware that you can sell the manufacturing plant next year for $75 million if the firm wants to get out of the investment. Your most similar competitor (in terms of business products, customers, and geography) has a target capital structure (market value) of 50% debt and 50% equity. Their equity beta is 1.6 . The target capital structure (market value) of your firm is 30% debt and 70% equity. The marginal tax rate for both firms is 35%. The yield on long-term U.S. Treasuries is 3%. The yield on your firm's bonds is 4.5%. And the market risk premium is 7%. a. What is the appropriate discount rate for this project? (10 pts) b. What is the NPV of this Project

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