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Suppose a company has a beta of 0.4, the market risk premium is 7.99% and the riskfree rate is 3.06%. the company has one outstanding
Suppose a company has a beta of 0.4, the market risk premium is 7.99% and the riskfree rate is 3.06%. the company has one outstanding bond issue with a YTM of 17.46%. Should the company pursue a project with an initial cost of $52,047 if the project generates cash flows of $29,819,$56,881 and $65,194 over years 2,10 , and 14 respectively? Assume that the company's equity and debt securities have total market value of $49.7M and $22.2M, respectively. The tax rate is 29%. Report the NPV of the project for your answer. Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. DO not include "\$" ", or any other formatting. Carry interim computations to at least 4 decimals Enter NPV answers as a positive or negative number rounded to 2 decimal places (+ \#\#\#.\#\#)
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