Question: Shattered Glass Inc is an all equity firm The cost of

Shattered Glass, Inc., is an all-equity firm. The cost of the company’s equity is currently 11 percent, and the risk-free rate is 3.5 percent. The company is currently considering a project that will cost $11.4 million and last six years. The project will generate revenues minus expenses each year in the amount of $3.2 million. If the company has a tax rate of 40 percent, should it accept the project?

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  • CreatedAugust 28, 2014
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