Question
XYZ Inc. is considering a $560,000 project. XYZ expects to earn a perpetual unlevered free cash flow of $96,000. Assuming the unlevered cost of capital
XYZ Inc. is considering a $560,000 project. XYZ expects to earn a perpetual unlevered free cash flow of $96,000. Assuming the unlevered cost of capital is 18.00% and the tax rate is 35.00%, what is the NPV of the unlevered project? Group of answer choices
$80,000
-$26,667
$426,667
$80,000
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
