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Une the information below for questions 5-9 Parker Corporation is considering a project that costs $9,000,000 and will increase the fer-tex cash flows by $2,000,000

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Une the information below for questions 5-9 Parker Corporation is considering a project that costs $9,000,000 and will increase the fer-tex cash flows by $2,000,000 per year for five years. The company has totales of $80,000,000 md total debt of $20,000,000. The borrowing rate is 10 percent, the corporate tax rate in 21%, the risk-free rate is 2% the beta of the stock is 1.5, and the return on the market is 9 percent 5. The percent of debt in the capital structure is 6. The cost of equity is I 7. The weighted average cost of capital is 8. The NPV of the project is 9. Should Parker undertake the project? Explain

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