Jiminez, Incorporated, is an all-equity firm. The cost of the company's equity is currently 13.7 percent and the risk-free rate is 4.6 percent. The company is currently considering a project that will cost $13.7 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.39 million. If the company has a tax rate of 25 percent, what is the net present value of the project?

Answer rating: 100% (QA)

Answer So the net present value ... View the full answer