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Suppose company is considering an investment in a facility of $65,000,000. Suppose the invested is expected to return cash in the following manner Year Year
Suppose company is considering an investment in a facility of $65,000,000. Suppose the invested is expected to return cash in the following manner Year Year Year Suppose in order to finance this investment they plan on using a combination of cash and stock. Our bankers have advised the company to issue 60% bonds at a rate of 3.5%, and 40% stock at a rate of 19% Is the project worth considering? Why or why not? (answer must have the actual NPV figure)
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