XYZ Inc. is considering a new project with perpetual revenue of $650,000, cash costs of $420,000....
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XYZ Inc. is considering a new project with perpetual revenue of $650,000, cash costs of $420,000. and a tax rate of 35 percent. The firm plans to issue $350,000 of debt at an interest rate of 9 percent to help finance the initial project cost of $850,000. The levered discount rate is 12.5 percent. What is the net present value of this project? (Do not round your intermediate calculations. Round only your final answer up to 2 decimal places, if necessary. Note: Your final answer must be in dollars without the $ sign at the beginning) XYZ Inc. is considering a new project with perpetual revenue of $650,000, cash costs of $420,000. and a tax rate of 35 percent. The firm plans to issue $350,000 of debt at an interest rate of 9 percent to help finance the initial project cost of $850,000. The levered discount rate is 12.5 percent. What is the net present value of this project? (Do not round your intermediate calculations. Round only your final answer up to 2 decimal places, if necessary. Note: Your final answer must be in dollars without the $ sign at the beginning)
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To calculate the net present value NPV of the project we need to determine the present value of the ... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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