Question: Ramacavanfed Co. is looking into a project. initial investment cost $400,000 which also come with a CCA rate of 25%. project is 10 years long

Ramacavanfed Co. is looking into a project. initial investment cost $400,000 which also come with a CCA rate of 25%. project is 10 years long & therefore equipment is expected to be sold for $45,000. its expected to generate before tax cash flow $80,000/annual , 10 years. cost of unlevered capital is 13% cost of debt is 6%. corp tax rate is 45%. Ramacavanfed Co plans to borrow $175,000 at 3%. flotation cost is 4%. Fund requirement is that Ramacavanfed Co must repay 25% of the loan on year 5 and and the rest of the loan on year 10. use adjusted present value method and calculate the NPV of this project

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DO NOT USE EXCEL Ramacavanfed Co. is looking into a project. initial investment cost $400,000 which also come with a CCA rate of 25%. project is 10 years long & therefore equipment is expected to be...

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