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You have been asked to review a potential project for your company. The project will cost $ 3 6 , 0 0 0 , 0
You have been asked to review a potential project for your company. The project will cost $ and should increase net income by $ for the next six years. The company's bond is currently selling for of par. The bond is a semi annual, year bond issued years ago with a face value of $ with a coupon of There were bonds issued. The company's corporate tax rate is The company has a beta of You've calculated the return of the market to be and the risk free rate is currently The company stock is selling for $ and there are shares outstanding. What is the present value of the profit or loss if the company implements the project?
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