Question
Your company is considering a project that will cost $1.2 million, and generate after-tax cash flows of $550,000 for 5 years. The WACC is 10%
Your company is considering a project that will cost $1.2 million, and generate after-tax cash flows of $550,000 for 5 years. The WACC is 10% and the target capital structure is 37.5% debt and 62.5% equity. The flotation cost for debt is 5% and the flotation cost for equity is 7%. What is the NPV of the project?
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
