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You are the financial manager of a firm and you are doing the capital budgeting for a new machine that expands the scale of the
You are the financial manager of a firm and you are doing the capital budgeting for a new machine that expands the scale of the companys existing assets. The machine is expected to generate cash flows of $ at the end of every year over the next years and it requires initial outlays of $ Assume that the firms market value of equity is $ million, the firms market value of debt is $ million, the required return on debt is and the required return on equity is The corporate tax rate is Using the WACC, what is the NPV of this new machine answer in dollars with decimals
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