Question
THE ANSWER IS NOT -3,790,792.61 Watson, Inc., is an all-equity firm. The cost of the companys equity is currently 13 percent, and the risk-free rate
THE ANSWER IS NOT -3,790,792.61
| Watson, Inc., is an all-equity firm. The cost of the companys equity is currently 13 percent, and the risk-free rate is 4.1 percent. The company is currently considering a project that will cost $11.58 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.26 million. |
| If the company has a tax rate of 40 percent, what is the net present value of the project? |
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
