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You are planning to issue debt to finance a new project. The project will require $19.94 million in financing and you estimate its NPV
You are planning to issue debt to finance a new project. The project will require $19.94 million in financing and you estimate its NPV to be $14.623 million. The issue costs for the debt will be 2.6% of face value. Taking into account the costs of external financing, what is the NPV of the project? The new NPV will be $ (Round to the nearest dollar.)
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International Money and Finance
Authors: Michael Melvin, Stefan C. Norrbin
8th edition
978-8131234136, 123852471, 978-0123852472
