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Your company is considering an expansion project that will cost $1.5 million. The project will generate after-tax cash flows of $700,000 per year for 4

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Your company is considering an expansion project that will cost $1.5 million. The project will generate after-tax cash flows of $700,000 per year for 4 years, common equity capital shares have a beta equal to 1.5 while the risk-free 30-33 return is 8 percent and the expected return on the market is 14 percent. It has 7-year semiannual maturity bonds outstanding with a price of $767.03 that have a coupon rate of 7 percent. The form is in the 30% tax bracket and uses one-fifths common stock and four-fifths debt to finance their operations, What is the NPV of this project and should you invest in this project? (Round to the nearest dollar.) 0-$712,676. No $689.247. Yes O $712,676, Yes O $689,247.No

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