You are planning to issue debt to finance a new project. The project will require $19.81 million
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You are planning to issue debt to finance a new project. The project will require $19.81 million in financing and you estimate its NPV to be $15 million. The issue costs for the debt will be 2.7% of face value. Taking into account the costs of external financing, what is the NPV of the project?
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To calculate the NPV of the project we need to consider both the cost of the debt financing and the ...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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