Jimenez, Inc., is an all-equity firm. The cost of the companys equity is currently 11.2 percent and
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Jimenez, Inc., is an all-equity firm. The cost of the company’s equity is currently 11.2 percent and the risk-free rate is 3.4 percent. The company is currently considering a project that will cost $11.6 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.5 million. If the company has a tax rate of 23 percent, should it accept the project?
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Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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