Question: Alpha Industries is considering a project with an initial cost of $75 million. The project will produce cash inflows of $155 million per year for

 Alpha Industries is considering a project with an initial cost of

Alpha Industries is considering a project with an initial cost of $75 million. The project will produce cash inflows of $155 million per year for 7 years. The project has the same risk as the fem. The firm has a pretax cost of debt of 5.46 percent and a cost of equity of 117 percent. The debt-equity ratio is 55 and the tax rate is 21 percent What is the net present value of the project? Mueble Color 0 520559 SATA30 0 700

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