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Suppose that a company has a capital structure of 70% debt and 30% equity. Annual after-tax cost of debt is 12% and tax rate is

Suppose that a company has a capital structure of 70% debt and 30% equity. Annual after-tax cost of debt is 12% and tax rate is 30%. Risk-free rate is 5% and market risk premium = 6%. The company beta is 1,25. An investment requires 1.000 TL of cash outflow and is expected to generate 300 TL, 500 TL, and 470 TL for a 3 years-period. Should the company accept the project? Show your calculations.

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