Question: Can somebody show the correct work for this problem thank you. Waterdeep Adventure Travel has an unlevered cost of equity of 12.7%, and a cost

Can somebody show the correct work for this problem thank you.

Waterdeep Adventure Travel has an unlevered cost of equity of 12.7%, and a cost of debt of 6.7%. Their tax rate is 33%, and they maintain a capital structure of 57% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $61,047, and would bring in $29,882 one year from today, and $89,931 two years from today. What is the NPV of this project, using the WACC method, if they invest today?

Please give your answer to the nearest dollar.

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Correct Answer

6,618.52margin of error+/-1

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