Question
Your company is considering a project that will cost $1.5 million. The project will generate after-tax cash flows of $475,000 per year for 5 years.
Your company is considering a project that will cost $1.5 million. The project will generate after-tax cash flows of $475,000 per year for 5 years. The WACC is 12% and the firms target D/E ratio is 0.40 The flotation cost for equity is 5% and the flotation cost for debt is 3%. What is the NPV for the project after adjusting for flotation costs?
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
