Question: Can someone please help with this question. I know the answer but I dont know how to get that answer. Please and thank you. A
Can someone please help with this question. I know the answer but I dont know how to get that answer. Please and thank you.
A project is expected to generate cash flows of $65,730 per year for 9 years starting today. The project has the same risk as the firm. The weighted average cost of capital (WACC) is 8.80%. Ignoring the impact of taxes, what is the most the firm could invest in the project today?
a. $216,127
b. $397,292
c. $591,570
d. $432,254
e. $648,381
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