What is the discount rate that should be used for the project?

Estimate The NPV Of the project

show on excel/detail how thx!

Laika is might take on a new animation project which would cost $10 million dollars and generate cash flows of $5 million over the next 3 years. The project's risk is lower than the risk of the company's average project. The company's current equity beta is 2.15 and its debt-to-equity ratio is 1/2. The YTM on company debt is 9% and the company's marginal tax rate is 40%. The risk-free rate is 4% and the market risk premium is estimated at 5%. To reflect the risk of this project, the company reduce their WACC by 1 percentage point. What is the discount rate Laika should use for this project? Choose the best answer. For credit, show all work in your Excel spreadsheet. What is the discount rate that should be used for the project? Show all steps and include relevant data. Your process should be clear and build to the final answer. Highlight the intermediate steps (as in the other worksheets) using a Discount highlight color rate =