Question: A project costs $1 million and has a base-case NPV of exactly zero (NPV =0 ). Note: A negative answer should be indicated by a

A project costs $1 million and has a base-case NPV of

A project costs $1 million and has a base-case NPV of exactly zero (NPV =0 ). Note: A negative answer should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars. a. If the firm invests, it has to raise $660,000 by a stock issue. Issue costs are 18.42% of net proceeds. What is the project's APV? b. If the firm invests, there are no issue costs, but its debt capacity increases by $660,000. The present value of interest tax shields on this debt is $92,000. What is the project's APV

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