Question
You are a consultant to a large manufacturing company that is considering a project with the following net after-tax cash-flows: Years from now After-tax cash
You are a consultant to a large manufacturing company that is considering a project with the following net after-tax cash-flows:
| Years from now | After-tax cash flow |
| 0 | -32 |
| 1-10 | 20 |
The project is estimated to have a beta of 1.7. Assuming that rf=0.04 and expected market return is 0.14, what is the net present value (NPV) of the project?
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Market Liquidity Theory Evidence And Policy
Authors: Thierry Foucault, Marco Pagano, Ailsa Roell
1st Edition
0199936242, 978-0199936243
