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The Azzon Oil Company is considering a project that will cost $50 million and have a year-end after-tax cost savings of $7 million in
The Azzon Oil Company is considering a project that will cost $50 million and have a year-end after-tax cost savings of $7 million in perpetuity. Azzon's before tax cost of debt is 10% and its cost of equity is 16%. The project has risk similar to that of the operation of the firm, and the target debt-equity ratio is 1.5. What is the NPV for the project if the tax rate is 34%?
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NPV 50 71r 50 71016 50 7116 4138 million The NPV of the project for Azzon Oil Company is 4138 millio...
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
