Question: Consider the first practice problem from Lecture notes 7 . In class, we saw that the project's NPV (including the tax benefits of debt) is
Consider the first practice problem from Lecture notes 7 . In class, we saw that the project's NPV (including the tax benefits of debt) is $41.36. What would be the NPV if instead of assuming that rE =10% and rD=6%, we assumed that rE=12.9% and rD=6.9% ? Use Excel and write your final answer in dollars rounding to 2 digits after the decimal point. Round only in the last step. Consider the first practice problem from Lecture notes 7 . In class, we saw that the project's NPV (including the tax benefits of debt) is $41.36. What would be the NPV if instead of assuming that rE =10% and rD=6%, we assumed that rE=12.9% and rD=6.9% ? Use Excel and write your final answer in dollars rounding to 2 digits after the decimal point. Round only in the last step
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