Question: Can Somebody show how to get this answer with work please. Roger has a levered cost of equity of 0.12. He is thinking of investing
Can Somebody show how to get this answer with work please.
Roger has a levered cost of equity of 0.12. He is thinking of investing in a project with upfront costs of $8 million, which pays $2 million per year for the next 8 years. He is going to borrow $4 million to offset the startup costs at a rate of 0.05. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?
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643,693margin of error+/-10,000
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