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Waterdeep Adventure Travel has an unlevered cost of equity of 14.5%, and a cost of debt of 7.7%. Their tax rate is 45%, and they
Waterdeep Adventure Travel has an unlevered cost of equity of 14.5%, and a cost of debt of 7.7%. Their tax rate is 45%, and they maintain a capital structure of 40% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $62,230, and would bring in $29,566 one year from today, and $87,613 two years from today. What is the NPV of this project, using the WACC method, if they invest today?
Please give your answer to the nearest dollar.
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