Question
You are planning to issue debt to finance a new project. The project will require $20.63 million in financing and you estimate its NPV to
You are planning to issue debt to finance a new project. The project will require
$20.63
million in financing and you estimate its NPV to be
$15.722
million. The issue costs for the debt will be
3.2%
of face value. Taking into account the costs of external financing, what is the NPV of the project?
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
