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You are asked to value your firm's following project. Year 0 1 2 3 Free Cash Flow -272 159 159 159 Your company's cost
You are asked to value your firm's following project. Year 0 1 2 3 Free Cash Flow -272 159 159 159 Your company's cost of equity is 14% and cost of debt is 7%. Suppose the project is a carbon copy of your firm's existing business. Given a tax rate of 30% and the information in the following tables. The project's NPV is Book value balance sheet Assets Excess Cash Liabilities 80 Existing Assets 600 Debt Equity 220 460 Total Assets 680 Total Liabilities and Equity 680 Market value balance sheet Assets Liabilities Excess Cash Existing Assets 80 300 Debt Equity 200 180 Total Assets 380 Total Liabilities and Equity 380 Instruction: Type ONLY your numerical answer in the unit of dollars, NO $ sign, NO comma sign, and round it to the nearest integer. E.g., if your NPV is 21.6, then just input 22.
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