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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 firm 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.) O $689,247. Yes -$689.247.No 5712,676. No $712,676 Yes

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