Question: (2 points) A proposed project lasts for three years and has an initial investment of $150,000. The cash ows are estimated at $50,000 for year

(2 points) A proposed project lasts for three years and has an initial investment of $150,000. The cash ows are estimated at $50,000 for year 1, $75,000 for year 2, and $100,000 for year 3. The rm has a target debtfequity ratio of 1.2. The rm's cost of equity is 12% and its cost of debt is 7%. The tax rate is 34%. What is the NPV of this project, after taking the otation costs into account? A) $35,899 B) $40,077 C) $49,353 D) $58,296 E) $65,741

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