Question
You are planning to issue debt to finance a new project. The project will require $20 million in financing and you estimate its NPV to
You are planning to issue debt to finance a new project. The project will require $20 million in financing and you estimate its NPV to be $15 million. The issue costs for the debt will be 3% of face value. Taking into account the costs of external financing, what is the NPV of the project?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
