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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?

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  • $803,091

  • $661,888

  • $694,983

  • $772,203

  • $445,617

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