Monday
July 28, 2014

Homework Help: Finance

Posted by Fred on Sunday, June 30, 2013 at 12:31pm.

A firm with 50% debt to equity ratio has a cost of equity capital of 15%, a cost of debt of 9% and a tax rate of 33%. The firm is considering a project costing 5,000 that will generate an annual cash flow of 1,000 for the next 8 years. What is the projects NPV?

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