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Wind Walker Baked Beans (WIND) is considering a project with an initial cost of $106,000 and a single cash inflow occurring one year from
Wind Walker Baked Beans (WIND) is considering a project with an initial cost of $106,000 and a single cash inflow occurring one year from today of $139,000. WIND's capital structure consists of 30% debt and 70% equity. Its outstanding bonds have a yield to maturity of 3.6%. WIND has a beta of 1. The risk-free rate is 1.7% and the market risk premium is 12%. If WIND has a tax rate of 22%, what is the net present value of the project? Answer Format: Positive number rounded to 2 decimal places.
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To calculate the net present value NPV of the project we need to determine the weighted average cost ...
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
