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this was all tbe info given Dyrdek Enterprises has equity with a markat value of $12.3 million and the market valuo of debt is 54.30m
this was all tbe info given
Dyrdek Enterprises has equity with a markat value of $12.3 million and the market valuo of debt is 54.30m ilikon. The corrpany is evaluating a new project that has more risk than the firm. the company will apply a risk adjustment factor of 1.6 percent. The new project will cost $2.50 million today and provide annual cash flows of for the next 6 years. The company's cost of equity is 11.67 percent and the pretax cost of debt is 5.03 percent. The tax rate is 21 percent. What is the project's NPV? Multiple Choice $232.291 $502,534 $201,730 $362,367 $210,989 Dyrdek Enterprises has equity with a market value of $12.3 million and the market value of debt is $4.30 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.6 percent. The new project will cost $2.50 million today and provide annual cash flows of $651,000 for the next 6 years. The company's cost of equity is 11.67 percent and the pretax cost of debt is 5.03 percent. The tax fate is 21 percent. What is the project's NPV? Multiple Choice $232,291 $502,534 $201,730 $362.367 $210.989 Step by Step Solution
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