Question: A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $66,390 for year 1, $132,540

A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $66,390 for year 1, $132,540 for year 2, and $147,410 for year 3. The firm has a target debt/equity ratio of 1.13. The firm's cost of equity is 13.54% and its cost of debt is 8.74%. The tax rate is 34%. What is the NPV of this project?

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