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You are considering a project with an initial investment of $800,000. The predicted free cash flows of the project for years 1,2,3, and 4 are
You are considering a project with an initial investment of $800,000. The predicted free cash flows of the project for years 1,2,3, and 4 are $500,000,$400,000,$500,000, and $300,000, respectively. Assume that the cost of debt, preferred stock, and common stock is 7%,11%, and 13%, respectively. You plan on raising 1/3 of required capital from each stakeholder. The firm has a tax rate of 25%. Using the WACC method, what is the NPV of this project? $572,675 5756,222 5671.554. $526,501 Correct answer is not available
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