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tion 4 O out of 5 points Bore Industries is considering investing 555 million into a new project. The projected free cash flows from the

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tion 4 O out of 5 points Bore Industries is considering investing 555 million into a new project. The projected free cash flows from the X project are shown in the table below. In order to finance the project, Bore will issue a 5-year bond with a face value of $60 million that will be repaid in one bullet payment at the end of five years (as shown in the table below). The cost of debt on the bond is 3.5%, Bore's unlevered cost of capital is 12%, and its marginal corporate tax rate is 25%. Using the APV method, what is the NPV of the project? (Select one) Free Cash Flows for New Project (in $ million) Year 0 1 2 3 FCF (in $ millions) (55.00) 15.00 30.00 50.00 Debt Level (in Smillions) 60 60 60 60 10.00 60 5.00 0

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