Vamos, Inc. has a target debt-to-value ratio of 0.25. The pre-tax cost of debt is 8 percent, the tax rate is 21 percent, and the unlevered cost of equity is 12 percent. A project that the firm is considering has a perpetual cash flow to the levered equity holders of $20,000 per year and an initial unborrowed cost of $130,000. What is the NPV of the project? $21,496 $36,667 $19,699 $23,218 $17,723 Previous