Question
The capital structure weights of Kala Ghoda is .69 and the tax rate is 35 percent. The cash flows of Kala Ghoda will be $1.57
The capital structure weights of Kala Ghoda is .69 and the tax rate is 35 percent. The cash flows of Kala Ghoda will be $1.57 million per year for 9 years and the cost of debt is 5.88 percent. What is the NPV if it's equity costs 11.45 percent and the project's cost is $8.9 million?
Multiple Choice
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$803,091
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$661,888
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$694,983
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$772,203
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$445,617
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
