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What is the cash flow for year 0? (express answer as a negative...) What is the cash flow for year 1? What is the NPV
What is the cash flow for year 0? (express answer as a negative...)
What is the cash flow for year 1?
What is the NPV of the project? (Hint: Be careful about rounding the WACC here!)
A firm has projected the following financials for a possible project: The firm has a capital structure of 37.00% debt and 63.00% equity. The cost of debt is 8.00%, while the cost of equity is estimated at 15.00%. The tax rate facing the firm is 40.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the cash flow for year 0 ? (express answer as a negative...)Step by Step Solution
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